Your main mistake is trying to use (only) a YQL query as the source of a JavaScript script. This needs to be a URL, which can be provided for you by the YQL console as highlighted below.
So the <script>
element might look like:
<script src="http://query.yahooapis.com/v1/public/yql?q=select%20*%20from%20html%20where%20url%3D%22http%3A%2F%2Fwww.fishingnotes.com%2Flakeinfo.php%3Fid%3D38742%22%20and%20xpath%3D'%2F%2Fdiv%5B%40class%3D%22lbox%22%5D%2Fdiv%5B1%5D%2Fdiv%2Fspan%5B1%5D'&callback=handleResponse"></script>
There are also a couple of minor issues with the JavaScript itself. A basic working version might look like:
<script>
function handleResponse (json) {
var ul = document.getElementsByTagName( 'ul' )[0],
li = null;
for ( var i = 0; i < json.query.count; i++ ) {
li = document.createElement( 'li' );
li.innerHTML = json.results[i];
ul.appendChild( li );
}
}
</script>