Well, looks like I answered my own question (must of been too obvious to warrant a response). Anyway, yes my Deploy to Web SWF is working live on our web server. This still doesn't explain why some of my projects will work locally using the Deploy to Web SWF while others do not. I have also determined that Illustrator artwork has nothing to do with this as I created a simple AI file and ran it through Catalyst - the Deploy to Web SWF is working fine when I run it locally just not my larger, more complex project. No Matter, all is well...I can move ahead with this project as I am confident the Deploy toWeb files are going to work when it goes live.
The quick answer is to this is how the assets are linked or not linked into the project. The main difference between the two deploy types is the security settings. That is what can the Flash Player (which runs your Flash Catalyst project), can access (local or network elements). Based on that requirement, your project might fail silently if you run the wrong version in the wrong location.
Glad you are enjoying using Flash Catalyst!
Yea, that makes sense. The versions that do run from the Deploy to Web SWF on my PC are very simple with few or no assets at all. The SWF's that are failing are much more complex with quite a few assets. I guess when the SWF has to reference those assets, it gets confused when running locally. Anyway, thanks for the clarification. I really can't wait to see where Catalyst is going in the future, this program is quite amazing!