Okay, I go to the bottom of the problem, but I am not sure how to fix it.
I removed the IFrame approach, and just tried to add the element to the document in the content script.
I am getting the error "tk-e.js:1 Uncaught TypeError: Cannot read property 'bind' of undefined"
With this extension I am using Jquery, and I do not know if that has something to do with this issue or not. SoI created a test extension without jquery, and my custom element inserts just fine.
Bottom line is I do not know how to fix this issue.
Any suggestions?