[F8] flv to swf has 2 linked folders?????

[chr3000]

I am building a web site that I want to have a video in it. I am using flash 8 professional. I had an AVI, used flash encoder to make a flv copy. Now, if I understand correctly I can't place the flv file into the web site I need it to be a swf file. If I load the flv into flash and do a "save as" a swf, I get a small swf file linked to the original flv file.
In other words, I need to have the small swf and the flv file in the web page or the video won't play. If I click on the swf file explorer opens up and the movie will start playing but I delete the flv file clicking on the swf will open up IE but it will have a blank screen.
Can any own tell me what I am doin wrong? If this were done correctly shouldn't there be just one swf file when I "save has" an swf file while in flash?