I have the same problem. I really wish this issue will be solved with tested code by Webassist (instead of asking us to do the testing).
Here is my situation:
A godaddy account with "deluxe" hosting plan.
The domain that i'm using is pointing to a sub-directory of the main domain.
My problem is exactly the same as the above members described i.e. when you try to preview from the admin or to embed into site you get nothing... just a blue area at the top right corner
Please help ASAP,