Adobe states not to work over a network so I'd recommend that as #1. It's not ideal but it's very published not to do so. Export locally and copy over to the network.
What type of app is this? If it's browser based I'd recommend installing a web server and only viewing it via that. Opening SWFs off a filesystem requires different permissions for the SWF as well as non-trusted domain setups throw Windows into a turmoil (it trusts nothing by default, which is correct behavior).
If you're making an application then this shouldn't be the case however but until you say that I'm assuming you're making something for the web or are trying to load a projector via a SWF.
Hi sinious, thatnks for your reply.
I am building an internal intranet - we wanted to store the html and swf files on our current shared drive as it's already secured so that only people with appropriate permissions can see the files.
It would be viewed via IE7 web browser - and we'd like to be able to use URLs to either open up folders or word/powerpoint documents.
Creating a websever is not possible as our corporate IT team would not allow it. I considered using Office365 sharepoint and putting all the files in there, however some of them are confidential and our business leaders didn't want that held outside of our infrastructure.
Seems like there might not be a solution to this problem
You unfortunately have no good solution here. Windows is far more complex than simply setting up a box and giving people a login. Windows will still treat it as a network source and therefore untrusted, as you're seeing. To make it trustable would be a topic for a Microsoft forum as it's pretty in depth on how to properly set up that environment. SWF will act as running locally off a filesystem unless you load it over a webserver so you can't get that built in behavior out.
Finally, just to re-iterate, Adobe has always stated working over a network is simply not supported. Unfortunately your IT staff is removing the only shot you had at getting around that. It's very easy to enable a web server and still keep documents protected.