This appeared to be most of the headache for all of the developer, though it enhanced the security by a few more higher level. But it seems not much people really understand how they can enable their Flash file to run locally on their hard disk.
This is the usual error message you'll get when you want to access any SWF locally through your harddisk and connect it to the internet/or any file. Click on Settings
Make sure that you have an active internet connection. You'll then be taken to macromedia's site. And wait while it loads.
It's optional and you can 'Always Ask', but i prefer to allow it always as I need to frequently run the SWF to test my project.