In the hope that someone has an insight, I have experimented a little to provide more information. First, here is the code of a short XHTML file produced (in part) with Save As in Mathematica:
<?xml version="1.0" encoding="UTF-8"?>
<!DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.1 plus MathML 2.0//EN"
"HTMLFiles/xhtml-math11-f.dtd">
<!-- Created with the Wolfram Language : www.wolfram.com -->
<html xmlns="http://www.w3.org/1999/xhtml">
<head>
<title>
Calculus Summary
</title>
</head>
<body>
<p>Introduction</p>
<p>
<script type="text/javascript">
alert('Hello, world!');
</script>
</p>
<p>Conclusion</p>
<p>
<script type="text/javascript" src="http://www.wolfram.com/cdf-player/plugin/v2.1/cdfplugin.js"></script>
<script type="text/javascript">
var cdf = new cdfplugin();
cdf.embed('HTMLFiles/Calculus Summary_1.cdf', 600, 400);
</script>
</p>
<p>Well, at least this works:</p>
<p>
<embed src="HTMLFiles/Calculus Summary_1.cdf" width="600" height="400"></embed>
</p>
</body>
</html>
I have inserted three paragraphs at the beginning to confirm that JavaScript is working. Following "Conclusion" is the code that Mathematica produces. It does not seem to embed the CDF file successfully. Finally, I placed a simple EMBED instruction that does work for me with FireFox and Safari. Everyone is welcome to try this file with this link. You should be prompted by a "Hello, world!" window and then see one successful embed of the CDF file. If you see two, you are seeing something different from me.
Note that the Mathematica JavaScript for embedding does work (for me) in an HTML file.
Paul