Hi,
Ok... as you want this in a lesson, it needs to go within a lesson page. You must put this into the page in HTML mode (click the <> sign to switch from the wysiwyg view).
You can dump this code into a blank page, then the swf will be the only thing on that page. (For instance, in theory your lesson could be one page in length with just this swf on it - although I'd recommened doing something else in that case, like just putting the swf into a single web page instead, but you get the idea).
Equally, you can put it into a page with other things already in it - there could be an intro paragraph that you want peope to read before they view the swf. In this case, put in all your other inclusions (text, images, whatever) then switch to HTML view and paste in the code (with your file name changes) into wherever you need it within the page.
The iFrame and the swf object itself will not conflict with any other text, images or other object (eg a youTube clip) so it will fit in easily.
I'm not on my own computer so I can't do a screen grab for you at the moment to show what the outcome is. If you still can't get this working, post back and I'll help further.
Hope this helps?