Which version of FL is on device and what device are you testing on?
in early versions of FL3.0, you needed to enable your application to be published with Network or Local file access. Maybe you can publish SWF again with Local file access settings. It's under Flash Authoring's File->Publish Settings->Flash Tab.
You might also want to test your application on other devices using Nokia's RDA service. http://forum.nokia.com/rda
Hope it helps,
// chall3ng3r //
i have the same problem. Flash Lite 3.1., N97 The application is published with network only. I have even tried local only with same results.
When i try to load an image with loadMovie(image.jpg), image is not show. But this only occurs when the application is installed on E:/private/UID/. If i install the application on C:, everything is working ok.
Also same problem with loading images from http://127.0.0.1:8888/GetImage/image.png. If installed on E:, images are not shown, but if installed on C:, all images are visible. Is this problem with security? My servlet http://127.0.0.1:8888/crossdomain.xml is never called.