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you shouldn't embed an flv in a swf. quality decreases and sync issues may arise.
you should choose the option to play the video in a playback component.
The video has no audio, and I need to be able to smoothly slide between different parts of the video, so embed is the best/only option.
Im not a video guy but Id assume that video format/bit rate/key frames/compression type all affect the quality and file size.
Id also assume that it convertes them to FLV on import.
have you added transitioning/sliding between different parts of the video with embedded video before?