Flash Unable To Open URL when Application.cfm exists! Why?

I'm very new to Coldfusion and action script, but due to job requirements, i got allocated the task of developing a cfm page where the user logs in using the embedded swf file and everything was working fine, till i decided to add the Application.cfm file for session variables.

Whenever i remove the application.cfm, everything works fine.But if i add it in again, nothing works again.... *sigh*

Error given out by flash is :
Error opening URL "http://192.168.1.6/flash/testing/LoginProcess.cfm"

Anyone knows how to fix this?

Application.cfm

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<CFPARAM NAME="timeout" DEFAULT="#createtimespan(0,0,0,5)#">

<!--- With Session Management Enabled --->

<CFAPPLICATION NAME="Flash" SESSIONMANAGEMENT="YES" SETCLIENTCOOKIES="NO" SESSIONTIMEOUT="#timeout#" >

<!--- CF will not set the client cookies automatically, so set them manually as per-session cookies --->

<CFIF not IsDefined("Cookie.CFID")>

    <CFLOCK SCOPE="SESSION" TYPE="READONLY" TIMEOUT="5">

        <CFCOOKIE NAME="CFID" VALUE="#SESSION.CFID#">

        <CFCOOKIE NAME="CFTOKEN" VALUE="#SESSION.CFTOKEN#">

    </CFLOCK>

</CFIF>

The Action Script

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	submitURL = "http://192.168.1.6/flash/testing/LoginProcess.cfm";
 
//Define function to process form data

function checkUser():Void {

    //Creates an instance of LoadVars to send form data to Coldfusion.

    // creating an Array with LoadVars called dataOut to send the form data as a bulk to Coldfusion.
 
    dataOut = new LoadVars();
 
    //These variables will be the once that will correspond to the variables in Coldfusion.

    dataOut.Fname = userinput.text;

    dataOut.Fpwd = passinput.text;
 
    // Create another LoadVars instance to receive the server's reply

    replyData = new LoadVars();
 
    // Initialize reply variable.

    replyData.reply_username = "";

    replyData.reply_pwd = "";

    replyData.reply_status = "";

    replyData.reply_tokencf ="";

    replyData.reply_ftoken ="";
 
    replyData.onLoad = handleReply;
 
    // Submit the order data

    dataOut.sendAndLoad(submitURL, replyData, "post");
 
}
 
function OnReset():Void {

    userinput.text="";

    passinput.text="";

    status_txt.text="";

}
 
function handleReply(success) {

    if (success) {        

        if (replyData.reply_status) {

                        gotoAndStop(3);
 
        }

        else {

            mx.controls.Alert.show("Login Failed!", "Alert");

            gotoAndPlay(1);
 
        }

    }

    else {

        mx.controls.Alert.show("There was a problem submitting your login. The server may be down or not responding.", "Alert");
 
    }

}

The LoginProcess.cfm

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<cfset LoginName=#Fname#>

<cfset LoginPwd=#Fpwd#>
 
<cfquery datasource="#FlashDB#" name="CheckLogin">

    Select * 

    From Clients 

    Where AccountName='#LoginName#' AND Password='#LoginPwd#' AND LoginStatus <> 'True' 

    <!--- this is for web login, not flash login --->

    <!--- AND FlashLogin <> 'True' ***might cause timeout error, if timeout doesnt work*** --->

    <!---AND suspend <> 'True'--->

</cfquery>
 
<cfsetting enablecfoutputonly="YES">

<cfcontent type = "application/x-www-urlform-encoded">
 
<cfif CheckLogin.FlashLogin NEQ True>

    <cfset LoginStatus=1>

    <cfset CurrBalance = #NumberFormat(CheckLogin.CurrencyBalance*100, '99')#>

    <cfset returnToFlash = "&reply_username=#URLEncodedFormat(LoginName)#&reply_pwd= #URLEncodedFormat(LoginPwd)#&reply_status= #URLEncodedFormat(LoginStatus)#&reply_balance= #URLEncodedFormat(CurrBalance)#&reply_nick= #URLEncodedFormat(CheckLogin.LastName)#&reply_clientID= #URLEncodedFormat(CheckLogin.ClientID)#&abc=1234">

<cfelse>

    <cfset LoginStatus=0>

    <cfset returnToFlash = "&reply_username=#URLEncodedFormat(LoginName)#&reply_pwd= #URLEncodedFormat(LoginPwd)#">

</cfif>
 
<!--- FlashOutput contains the string that will be sent back to Flash--->

<cfprocessingdirective suppresswhitespace="Yes">

<cfoutput>

#returnToFlash#

</cfoutput>

</cfprocessingdirective>

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<body>
 
<cfoutput>
 
        <object width="350" height="250">
 
            <param name="movie" value="Login3.swf">
 
            <embed src="Login.swf" width="350" height="250">
 
            </embed>
 
        </object>
 
</cfoutput>
 
</body>