Have you tried changing your line:
if($type == 1) echo '<div style="margin:7px 0px 0px 0px;float:left;"><object type="application/x-shockwave-flash" height="360" width="634" id="live_embed_player_flash" data="http://pt-br.twitch.tv/widgets/live_embed_player.swf?channel='.$channel.'" bgcolor="#000000"><param name="allowFullScreen" value="true" /><param name="allowScriptAccess" value="always" /><param name="allowNetworking" value="all" /><param name="movie" value="http://pt-br.twitch.tv/widgets/live_embed_player.swf" /><param name="flashvars" value="hostname=pt-br.twitch.tv&channel='.$channel.'&auto_play=true&start_volume=25" /></object></div>'.$pub.'';
to
if($type == 1) echo '<div style="margin:7px 0px 0px 0px;float:left;"><iframe src="http://player.twitch.tv/?channel='.$channel.'" height="360" width="634" frameborder="0" scrolling="no" allowfullscreen="true"></iframe>></div>'.$pub.'';