Since you say that the gadget works fine when you set it to the Cisco Live room and doesn't with the new room. It has nothing to do with the gadget itself. The agent (spark user) needs to be part of the room of the spark room id. Most likely it is not and therefore does not have the permissions to read the messages. I would look at the client logs and/or the browser's console.
Thanks for responding. It is great to have such a responsive forum which explains why i jumped on to it too soon. That was exactly what i was missing earlier. In my further testing i realized that someone will have to administer the spark room i.e. assigning spark users (agent) to the room and so forth. I missed this piece earlier and it wasn't clear enough in the documentation. Thank you for the quick response. Once i created the room, used the spark ID in the Layout for the team and added the spark users to be part of the room, everything worked.