1) \ is a backward slash, / is a forward slash
2) use forward slashes and relative paths as they are OS independend
3) don't use the workaround jasonsplace linked to... as that is not a good workaround and i highly doubt, that this is the problem.
4) in the root dir of the cd you can't use ../ as that points one directory up, but there
is none...

Hmm.. could you pls post the absolute pathes to your files?
Like :
d:/index.html //will be initially loaded from CD
d:/flash/bla.swf // will be embedded in the index.html

So we will have an idea what is going wrong...