How can I use it with a exposed form which is a displayed in a block

I am not quite following and the image you linked had been removed. Could you upload again? Probably best to upload to ticket that way it does not get removed so quickly.

I have now added code that will support the exposed form block just as in the page display. I have also added support for manually embedding the exposed form manually.

These changes are available in the 7.x-2.x branch currently.

I need to update some advanced_help code and provide some code examples for using the embed exposed form utility.

Once I update the documentation etc... I will release the module into beta.

Documentation

/**
 * Returns the exposed filter widgets for a view.
 *
 * @param mixed $view
 *  Either a string with the name of the view or an object of the view
 * @param string $display_id
 *  An optional string with the name of the display for the view.
 *
 * @return string
 *  The themed exposed filter form.
 */
function embed_views_exposed_form($view, $display_id = '') {

To figure out the id of a display, look under Other, in the
view edit page for the particular view that will be embedded, for
Machine Name what ever this name is is what should be used
for the $display_id variable.

Usage

Simple version of code to embed an exposed filter.

  print embed_views_exposed_form('test', 'embed_1');

Embedding a view's exposed form for an alrady created view using the
embed_views_exposed_form() helper function.

  $view = views_get_view('test');
  $view->set_display('embed_1');
  print embed_views_exposed_form($view);

  ... some other code ...

  $view->destroy();

Embedding a view's exposed form for an already created view using the
display's embed_views_exposed_form() helper method.

  $view = views_get_view('test');
  $view->set_display('embed_1');
  print $view->display_handler->embed_views_exposed_form();

  ... some other code ...

  $view->destroy();

I'm getting this error:

Fatal error: Call to undefined function embed_views_exposed_form() in C:\apache\xampp\htdocs\nickray\modules\php\php.module(74) : eval()'d code on line 2

Which version of embed_views_display?

Thank you -- embed_views-7.x-1.1

Ok then that's the issue if you want the embed_views_exposed_form functionality you need to update to the 7.x-2.0-beta1

Awesome thanks!