I really do not think this is going to be possible. UG is right: if Vodpod can’t do it (and it seems they can do anything) then it can’t be done. You could LINK to the video stream, but not run it on the blog.
I just embedded a Stickam live stream and it worked. It broad-casted live from a radio studio – “Red Bear” or something.
I had to copy/paste the embed url into the Vod:Pod window but else it was business as usual. Stickam’s design is ugly and I did not like the features that came with it so I deleted it again.
Vod:Pods have a frame that makes live stream unsuitable for Widget. Same with live clocks. You can embed clocks and streams in posts and in the VodPod WP widget, but this VodPod frame that the widget comes with makes the widget useless.
That is really odd: Vod:pod is getting in their own way and hinder the use of their features…