use the debug version of the flash player to see if you have a cross-domain security issue. (or post a link to your page that's trying to load the image so one of us can test it for you.)
Thank you for your quick response. I have installed the debug version of flash player and test the same. the problem is when loading http://www.domainname.com/ImageHandler.ashx?PK_Id=909 gif images. When I use any other paths with .jpeg extentensions it works in the local host. I am working on a project right now and dont have any link I could send the code if you want through mail so that I am making any errors in the code calling in crossdomain.xml. But there is no crossdomain.xml in the domain from where i am calling the ids from.. it loads the images in normal html file but not when placed in application and reads http://localhost/WidgetStore/Web/Secure/Config.aspx?new=20 it shows white instead of showing the images.
let me know if you have a problem after getting your project online.
for local testing, you can use the flash security settings to allow your localhost to access the internet sandbox: