[moderator: edited title to include Chrome version]
Please can anyone assist in this regard.
Thank you for the detailed report. This is an issue with Chrome. see 767342 - UI no longer exists to run .swf URLs - chromium - Monorail
Lots more issues reported on the Chrome forums: Google Groups
The Flash Player version in this screenshot is the ActiveX Control for IE. This is not the Flash Player for Chrome.
The one in your screenshot in step 4, Flash Player PPAPI, is the version for Chrome.
This is a common theme as browsers tighten controls on Flash Player. Firefox blocks the loading of bare SWFs from the local filesystem as well. The path of least resistance is to run a local webserver.