EDIT: I posted the following observations on 16 April 2012 as an answer. I think I should really have made them a footnote to the question rather than an answer.
For what it's worth, I suspect the answer is no. This is essentially because admissibility is preserved by conjugation by upper triangular matrices, and non-identity diagonal matrices are not admissible. So suppose that $\iota$ is an embedding of the required sort. Then $\iota$ maps the subgroup $\mathrm{UT}(n,\mathbb{R})$ into $\mathrm{UT}(m,\mathbb{R})$, since these are the respective derived subgroups of the domain and codomain. Let $D^*$ denote the subgroup of $T^*(n,\mathbb{R})$ consisting of diagonal matrices. Since $\langle A,\mathrm{UT}(n,\mathbb{R})\rangle$ is soluble but not nilpotent for non-scalar $A\in D^*$, and $\iota$ is injective, we must have $\iota(A)\notin\mathrm{UT}(m,\mathbb{R})$ for non-trivial $A\in D^*$.
Now, on the assumption that there exists $M\in T^*(m,\mathbb{R})$ such that $\bar{A}=M^{-1}\iota(A)M$ is diagonal for all diagonal $A$ then on the one hand $\bar{A}$ is admissible since $\iota(A)$ is, by assumption, while on the other hand non-identity diagonal matrices are not admissible.
So does the $M$ in this argument necessarily exist? If the image of each diagonal matrix under $\iota$ is diagonalisable, then since the diagonal matrices commute, they are indeed simultaneously diagonalisable via a similarity matrix $M\in\mathrm{GL}(m,\mathbb{R})$. But I don't know whether the image of a diagonal matrix under $\iota$ is necessarily diagonalisable, nor do I see why $M$ can necessarily be chosen to be upper triangular...