Yeah, it looks cool, but MusicMan can you clarify this technique for me, please??

According to Flash help manual:
anyMovieClip.loadMovie(url [,variables]);
Arguments
url An absolute or relative URL for the SWF file to load. A relative path must be relative to the SWF. The URL must be in the same subdomain as the URL where the movie currently resides. For use in the Flash Player or for testing in test-movie mode in the Flash authoring environment, all SWF files must be stored in the same folder, and the file names cannot include folder or disk drive specifications.

So how is it working???