Comparing these two definitions from OxfordDictionaries shows the two words obviously overlap...
embarrass- cause (someone) to feel awkward, self-conscious, or ashamed ashamed- embarrassed or guilty because of one’s actions, characteristics, or associations
But two key differences are...
1: embarrassed more often applies to socially awkward contexts, rather than regret, guilt
2: You don't usually feel embarrassed when you're alone
I don't really like OP's idea that being ashamed is more "serious" than being embarrassed. I might feel ashamed if I discovered I was the only person in my road who didn't leave a Christmas tip for the postie, but that would be nothing compared to how embarrassed I'd feel if I discovered said postie knew exactly what was in all the packages she'd delivered over the preceding year!
TL;DR: Shame is mainly a response to having transgressed your own (internal) moral code. Embarrassment is more about feeling that others may laugh or look down on you for something you did.
Best Answer
Normally the first. The verb "feel" can have an adjective complement, and as we are describing someone's feelings, the adjective works well. Compare
The noun form might used rarely, for example:
Here a noun is required, as it has to be "something..."