Launch Failed and Problem on bin-Debug folder

I have downloaded flex_sdk_4.0.0.14159 and configure it up in Flex 3 via Windows>Preferences>Flex>Installed Flex Sdks.

The project was done in Flex Builder 3, so I have changed the settings in Project>Properties>Flex Complier>Use a specific SDK:Flex 4

The bin-debug and html-template folders are created, but the bin-debug folder does not seem to create all the necessary files. There are no .swf or .html files.

Hence, when I try launch the application, I get a Launch failed, file not found error message as follows:

File not found: file:/C:/Documents%20and%20Settings/Administrator/My%20Documents/Flex%20Builder%203/test2/bin-debug/test2.html

I have tried the following:

Project->Properties->Run/Debug Settings->APP_NAME->Edit...
where Url path is correct. But still facing problem

Project>Properties>flex compiler>use a spacific sdk and  I have select  Flex 4 there 

I'm obviously missing something simple....but I cant figure out what.

Any help greatly appreciated.