If you run a SWF on your desktop that communicates with data sources on your local PC, you will probably get an error. As I have found with Xcelsius over time, the two most common causes for connectivity errors other than user error is the absence of a cross domain policy file, or the flash player security settings not being set. To access Flash player security settings, go to the following URL:
http://www.macromedia.com/support/documentation/en/flashplayer/help/settings_manager04.html

Inside, you will see the following:
Flash Security

If you are concerned with security, you can define a specific directory on your PC or Internet that Flash player can access. As you can see in the screenshot, I define “C:/”, which ensures that I can run SWFs anywhere on my PC that may use local XML files.

After you make changes you can close the browser window… There is no save or execute button. When you re-open your SWF, the new security settings are enabled.

For more information on this topic, you can go to:
http://www.macromedia.com/support/documentation/en/flashplayer/help/settings_manager.html#117164

All rights reserved Goodman Group LLC