Does anyone know why Hulu won’t work on my blog?

Hulu.com is only licensed to offer their video in the U.S. As a result, they have to stop people from linking directly to their videos, as I am assuming you have done.

You could link to a web page on their site that contains the video, but you would still be faced with the fact that it would not work for anyone outside the U.S.

Hulu does allow embedding of videos, but if you’re getting that error, I don’t know. Is your web server located in the us?

You are right. Here are the details from the Terms of Use:

Embedding a Video Using the Video Player. You may embed videos using the Video Player, provided you do not embed the Video Player on any website or other location that (i) contains or hosts content that is unlawful, infringing, pornographic, obscene, defamatory, libelous, threatening, harassing, vulgar, indecent, profane, hateful, racially or ethnically offensive, encourages criminal conduct, gives rise to civil liability, violates any law, rule, or regulation, infringes any right of any third party including intellectual property rights, is otherwise inappropriate or objectionable to Hulu (in Hulu’s sole discretion), or (ii) links to infringing or unauthorized content (collectively, “Unsuitable Material”). You may not embed the Video Player into any hardware or software application, even for non-commercial purposes. Hulu reserves the right to prevent embedding to any website or other location that Hulu finds inappropriate or objectionable (as determined by Hulu in its sole discretion).