Flash Lite 2.x supports only device video, which means it relied on the device to decode and render video. It is limited by the video formats supported by a specific device, can't synchronize the video with the timeline, can't control the volume of the video clip, and can't rotate, skew, composite, or blend the device video with other media. (The video is always on top of any other Flash content.)

Flash Lite 3.0 adds support for Flash Video (FLV) using versions of the On2 and Sorenson codecs optimized for mobile devices. FLV video is rendered directly in the Flash Lite player rather than by the device, so you no longer need to be concerned about whether your target devices support a particular video format. Flash Lite 3.0 supports the playback of Flash Video using the following methods:

• Embedding video in SWF files
• Progressive downloading of video from local folders and web servers (HTTP)
• Streaming video from a Flash Media Server

See Working with video and images for complete information about using FLV in Flash Lite 3.0.