Hi,
You are right when you say that 3.5.3 has the capability called Smart Seek and it can be used for trick modes, however, this can only be done for data in the buffer and is not very straight forward and would require coding. You need to use the api NetStream.step() for it. Let's say your video is playing at 40 fps (frames per second) and you have a button to get it to 2x, then you will need to program a timer to call ns.step(8) evey 1/10th of a second. Similarly, for 1/2x you may need to pause the video and program it in a way to step 20 frames per second, let's say step 2 frames every 1/10th of a second
To know more about these features you may refer:
http://blogs.adobe.com/actionscriptdocs/2010/06/flash_media_server_stream_reco.html
http://help.adobe.com/en_US/FlashMediaServer/3.5.3/FeaturesGuide/flashmediaserver_3.5.3_features.pdf
Please revert back if you need more info.
Thanks,
Abhishek.