Paste the code that you've copied earlier in the Content box. Don't forget to type a title for your widget. In this example I named my radio widget as Demo Radio.

After saving, you can view your blog.

You will notice below that the radio is there but the length of the radio overlaps with the width of my widgets column. To remedy this go back and edit the code that you've copy pasted earlier by going back to your Dashboard and clicking on Layout. By now your radio should be somewhere on your layout page. This is dependent on the layout of your blogspot page.

On the code that you've pasted (see the 4th picture) look for width = "somenumber", change the value in between the quotes to say 100. You can also look for height and change the value. Experiment until you get the correct size. You can also make your radio play automatically by adding this, autoplay = "true" to your code lets say beside height separated by a space. Save this and view your page.

So there, I hope you got. Next time I have way too much time on my hands, I'd post a tutorial on how to change Blogspot layout.

Of course I had to remove that Demo Radio... ;p

Ciao!