Currently, it looks like the embed code is simply outputting as follows...
Embed link
<iframe width="560" height="315" src="/node/337/embed" frameborder="0" allowfullscreen></iframe>
This should really be a button with a popup, just like the Share button. The button can just say "Enbed" (perhaps with a "<>" like icon) but then within the popup it should say, "Embed this video on your site using the following code." and then put the embed code in a text box, just like the link in the Share menu has (and also what YouTube uses). Also, notice that the src link above needs to be a full URL.
Currently, it looks like the embed code is simply outputting as follows...
This should really be a button with a popup, just like the Share button. The button can just say "Enbed" (perhaps with a "<>" like icon) but then within the popup it should say, "Embed this video on your site using the following code." and then put the embed code in a text box, just like the link in the Share menu has (and also what YouTube uses). Also, notice that the src link above needs to be a full URL.