After a year of R7D i have come up wih a great solution.
I have come up with a security scheme that is virtually Flawless, in other words Im sure someone can hack it but as far as I know its completely ensures that no one steals your movies.
It involves creating a gif file hidding a special comment within its code. Flash is set out to search for the presence if this gif file by way of "Load Variables" and reads the gifd file as if it was a text file rather than an image.
If the gif file is present and if the comment code matches the variable being searched for the movie will play. If the image file is not there or if the key code does not match it can be set to do what ever actions you want from displaying a water mark, displaying a warning message in an endless loop, launching a massive circle jerk (pop up add loop) to teach them a lesson, or simply quit and shut down.
Im experimenting with making the gif file uncacheable but even if the file is cahed most people wont know the difference cause it may be the logo on your page, the one pixel spacer, a banner add. They'll never know which image is the key LOL.