You don’t quite run into this problem when running the file off an html browser. But if you were to run the Chat3.swf file from your desktop you are going to run into a small security issue.

Adobe has a built in security feature to prevent flash player from connecting to the internet.

Here is how to disable such a useful feature.

First you will be prompted by a security box. Just click “settings”

Next your web browser will open and you will be given something that looks like an image. It isn’t. Click Always Allowed and then close your browser.

Restart the Client and everything will work.
Again you do not need to do this if you are running the chat3.swf from the browser. You will only need to do this if you have saved the swf file to your desktop.