where do I need to place this code?
Add this to the head of your webpage:
<!-- Location of javascript. -->
<script language="javascript" type="text/javascript" src="swfobject.js" ></script>
You would create a page/section defined as a wrapper or follow the directions in various hacks discussed in the forum to wrap content of another application or page.
The javascript call would go in header defined your template.
You should read the WB documentation which describes how to create pages/sections and modify your template.
http://help.websitebaker.org/pages/en/welcome.php