Hi jariangibson,
I'm sorry to hear that you're having trouble. Hopefully we can help you sort this out.
Currently, our SkyDrive embed only supports iframe's with r.office.microsoft.com as part of the URL. In the code you posted above, the URL is skydrive.live.com.
I am curious how you generated that skydrive embed URL? I just logged on to SkyDrive, created a new PowerPoint document and clicked on 'File > Embed this Presentation' and the code it generated for me was at r.office.microsoft.com and I was able to embed it properly at WordPress.com.
Since the instructions vary slightly for PowerPoint documents vs. Excel documents, I've created a new support document at the following url:
http://en.support.wordpress.com/powerpoint-web-app/
Can you please try again with the instructions provided?