As I understand Flash Lite 2.0 is a stripped down version of
Flash 7 (that is ActionScript 2.0) with a couple of things added
for mobile specific things. But is it possible to use the free Flex
2 SDK to compile a SWF that will run on Flash Lite 2.0 (or Flash 7
for that matter).
I'm not familiar with Flash Lite 2.0, so maybe I shouldn't be
answering this, but I've used the SDK for several projects and I
believe that like Flex Builder it requires at least Flash 8. So, if
FL is comparable to Flash 7, I doubt if it would work. Just my
humble opinion, but hope it helps.