Lua is trivial to embed, but the extension API is lower level than V8's. It's a stack based API and you have a handful of primitives to work with. It's no less powerful, it's very robust and doesn't limit you in any way, and if you just want to export global functions into the language, it's a no-brainer. However, exporting C++ objects into Lua requires that you understand Lua's metatables and you may find it very confusing at first. V8 probably makes that more straightforward.
If you want a Lua embedding API that does more work for you, there are libraries like Luabind or ToLua++. Lua doesn't make you pay for what you don't use.
I personaly would not Javascript over Lua. Javascript is a remarkably good language, given that one engineer wrote it in a few weeks, but Lua had a lot more time and thought put into it. It's a CS gem, making the most of a small set of carefully chosen concepts. It does everything Javascript does, but better. It has proper lexical scoping, tail recursion, a very powerful metaprogramming facility which can emulate Javascript's prototype-based inheritence (among other things), coroutines, etc. It's just a cleaner, better language.
One reason I might choose Javascript over it is if I knew my audience already knew Javascript, but I did that once with TCL and lived to regret it (though JS is nowhere near as bad as TCL; you can't go that wrong here).