"Live link" means that inside the square brackets the link is active, highlighted. Clickable, just like a regular URL. I think you have to break the link (using the broken-chain icon) in order for the thing to work.
I just discovered that part of the problem with Odeo is that SOME podcasts work and some do not. So you have to be careful which podcast you put it in; if it doesn't work, make a new podcast and put it in there.