If you have a flash object deployed on a server that is using webservices from a different server, you need to build a crossdomain.xml file for the server that is deploying the web service (in your case, your local machine), so that the Flash can bring the outside content in. This is a security layer that is built into Adobe Flash.
For security reasons a ShockWave Flash (SWF) file is only allowed to access external data on the same domain it was loaded from, if your SWF needs to access external data from a different domain then read on for how to do this…
Allow Hosted SWFs to Access Web Services/Files on your Web Server Domain .
You can control which domains SWFs can see data on your web server (yes, you have to control which SWFs can access data on YOUR web server, it sounds back to front but thats how it works), see this URL for more information: External data not accessible outside a Macromedia Flash movie’s domain
In this example I am going to allow any SWF file that is hosted on any domain to access data on my web server:
Create a text file called crossdomain.xml in your web server ROOT folder (i.e. C:\Inetpub\wwwroot for IIS or C:\Program Files\Business Objects\Tomcat\webapps\ROOT for Tomcat).
Use a text editor (notepad will do) and put this in the file - this will allow access to your web server from any SWF in any domain whether secure (https) or unsecure (http):
<?xml version="1.0"?>
3. For more example on this you can also refer to this URL: http://www.crossdomainxml.org/
4. To test that the file is in the correct place on your web server you should be able to open it in Internet Explorer using http://yourwebservername:port/crossdomain.xml
For example, if you are using Query as a Web Service on Tomcat but you host your SWF on IIS (even if it is on the same web server the domain is treated as different because Tomcat and IIS use different port numbers) then you would put the cross domain xml file into your Tomcat ROOT folder."