As promised, here's an updated package.
1) Fixed typo in README file (there is now no mysterious "step 6")
2) Tried to improve word-wrap issues in the README file, but this was difficult due to there being a few lines of code in there. If you're having trouble, maybe a text editor that handles long lines would be a better way to proceed.
3) Clarified some docs and bookmarklet installation instructions.
4) Fixed a minor bug that might cause incorrect behavior when adding a web page that doesn't have a title tag.
6) Suggested Spanish and Korean translations for the help file are now provided, thanks to my officemates.
I looked into making this use the full-blown resource display tweaking (control of window size, etc.) that you get with the standard Moodle add resource function, but in the end I decided not to do that. It would greatly complicate the instructions for adding the modification (you'd need to add code to several places in mod.php).
If Martin or someone else on the official programming team wanted to add this feature to the general Moodle release it'd be worth altering mod.php, but otherwise probably not (since you'd have to do it all over again every time you upgraded). If you really need all the cool features you can always edit the resource after adding it.
Again, you can test out the modification before installing it by going to http://teachanything.net/course/view.php?id=38 and logging in as teacher, password teacher.
This code should still be considered experimental, but so far no one has reported any serious bugs.