Just saw that Pasi has a nice article telling step by step how to setup a system to play FLV and live video with Flash Lite 3.0 and Flash Media Server 3.

  • Install Flash Media Server 3 (download developer version)
  • There are a few sample FLV files in applications/vod/media folder, so you can use one of them for testing
  • Create a new Flash Lite 3.0 file in Flash
  • Add a new Video symbol to library
  • Drag this Video symbol to Stage and give instance name to it: video
  • Type following programming to timeline

See here for details.