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Try updating to AIR sdk 1.5.2 if you haven't akready : http://www.adobe.com/products/air/tools/sdk/
Read the other release notes too.
Thanks Antonio. But that didn't do the trick. The SWF is playing without the video part
Do you happen to have a sample file? I don't normally build AIR apps in the HTML environment, but maybe I can take a look.
Quite possibly this is related to a problem with the way Flash in AIR resolves relative file paths.
If the video to be played is in the application directory, then AIR tells its captive Flash plugin that the URL of the file is something like "app://foo.flv". However, the Flash player plug-in doesn't understand the app:// url scheme, so it can't find the file to play. In your video player code, try tracing out the file URL before playing it.
The workarounds, if this is the issue, are:
1. Provide an absolute URL to the video file.
2. Load the file from outside the application directory.
I can't thank you enough, that solved the problem!