I'm going to try and explain this to you, though you should be aware that you'll need to have a basic knowledge of html and a general idea of how websites work and how files link to each other through html. These are things that you'll need to learn yourself, though are definitely worth knowing. Right...
When VideoWrap creates a web template file it'll create a folder with all the files you'd need inside it. So dropping that folder into your webserver will create a folder on your site within which the default page will be the template.
I.e. you output a web template file called 'My_Movie' which creates the folder My_Movie. Dropping this into your root html directory (often www/ though is likely to be different on an iweb account) will mean that the web template is now in root/My_Movie.
So now http://www.yoursite.com/My_Movie
would show you the template page with the flash embedded.
To complicate matters further, provided you keep the files in their same relative locations (within the same directory) you can embed the flash player in your own html by copy pasting the code used in the template. This is essentially what I did for my own website.