The problem is that your web browser is obviously blocking the Flash plugin on which the current implementation of Diagrams for Confluence is based. The first time you open the app (or any other Flash Player software hosted on your confluence domain for that matter), you need to tell your browser that you trust that site and the Flash movies hosted on it.
Once you have done this, the application should load. Unfortunately in the UI of the browsers it is not easy to see that the browser is blocking the functionality.
Depending on the browser you are using, there are different ways to unblock the content:
For Firefox: Click the icon at the far right in the link address bar and follow the instructions.
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