Hi, I had the exact same issue. Flash policy correct, can telnet to both 843 and 5900 and control mouse on vpn server.
It looks like flash security is different for the local file:/// protocol in the browser. Try moving your html document to a webhost. Accessing the swf over http:// solved this issue for me. Good luck!
2009-07-03 16:27:38 UTC in Flashlight-VNC
