Error 2124 when loading encrypted external SWF files

[99999999]

Isn't SWFKit supposed to handle the loading of external SWF files when using the loader?

So for instance the following code:

static public function loadScene(sceneName:String):Loader
{
var url:String = GameUtils.getFullPath(sceneName);
trace("Load location " + url);

var urlreq:URLRequest = new URLRequest(url);
var sceneLoader:Loader = new Loader();
sceneLoader.load(urlreq, new LoaderContext(false, ApplicationDomain.currentDomain));

sceneLoader.contentLoaderInfo.addEventListener(Eve nt.COMPLETE, initScene);
sceneLoader.contentLoaderInfo.addEventListener(IOE rrorEvent.IO_ERROR, HOLoadErrorHandler);

++m_numActiveLoaders;
return sceneLoader;
}

Works fine, in the following situations:

1. When running the SWF file generated by Flex. So no SWFKit wrapping at all.
2. When running the EXE file generated by SWFKit, but using unencrypted SWF external files.

It does not work when:
1. Running the EXE file generated by SWFKit, and packaging all the resources. (With the external SWF files included as resources.)
2. Running the EXE file generated by SWFKit, and not packaging all the resources. (With the external SWF files included as resources.)

We are using Flash 3.2, with Flash 10. But instead of getting the expected "Event.COMPLETE" callback, we instead get the "IOErrorEvent.IO_ERROR" with the error #2124 which is what flash sends when it doesn't recognize the format of the file to be loaded. I thought the loading was supposed to be transparent, and all in memory.