the jerkiness you describe is a "feature" of encoding. have you used any compression to get to the AVI file you're encoding? ideally you'll want to follow this workflow:

source tape -> editing platform -> flv

rather than:

source tape -> edit -> avi -> flv

as you're losing information which will affect the quality of the final file.

what sort of video is it? if you've got lots of motion/detail/text, encoding to FLV will look poor compared to the source, no matter what compression settings you use. Things like stuttering pans will have to be lived with!

however, if you encode to h264 MP4 (or other flash-friendly hd codec) then you're looking at better compression. the only snag with that is that it requires you to use a netstream object rather than an flvplayback component ( i think, you might want to check that for the most recent version of flash player) and also any HD video will need to be hardware accelerated. If your demo machine is struggling with the current video (another possible reason for the stutter) then it will NOT like HD....

here's a link to the adobe tutorial on getting HD into flash:

http://www.adobe.com/devnet/flashpla...sh_player.html

hope this helps,
Dan