Flash security is, in a word, whack. I won’t even attempt to summarize the full schebang right now, but one trick I just learned: compile with the “-use-network=false” flag if you want to load a local resource from disk, such as when testing with SAFlashPlayer.exe. (So far as I can tell, “-use-network=true” does absolutely nothing as it still doesn’t let me access the network when I run from inside SAFlashPlayer.exe.)
Tip: If you ever want a complete list of all compiler options, just run “mxmlc.exe -help list advanced details"