[SOLVED] Possible Conflict With Atahualpa and WP2.9???

I was trying out the new video embed feature in WP 2.9. They say all you need to do is put the URL (not embed code) on a line by itself and it will embed it for you.

I have tried it in the VISUAL and HTML editors and get the same result when I preview:

I also looked and cannot see any default size of the embed, so I assume it pulls the default from YouTube, etc?

Does anyone have a suggestion or idea?

Thakns
John


PS
Embedding the old way works fine. I copy the embed code and paste it in the HTML viewer