Loading a swf in another swf and video play problem

So i have an HTML page (in folder Subdirectory 1) and i embed 2.swf (in folder Subdirectory 2 (both folders are located in Parent Directory)).
2.swf loads 1.swf from Subdirectory 1.
In 1.swf i have a video player( which loads video1.flv from videos folder) and if run individually it plays without any problem.
If I run the html it loads both swf's but the video does not play because of a "Stream.NotFound" exception.
This arrangement of files and folders is a requirement for my project. So, please can you tell me, why this behaviour occures and if there is a way out from this.
