in the first frame of your flash file add this code:

import flash.system.fscommand;
fscommand(“fullscreen”, “true”);
fscommand(“allowscale”, “false”);

stage.addEventListener(Event.ADDED, FLVAdded, true);

function FLVAdded(e:Event):void
{
if (e.target is FLVPlayback)
{
e.target.fullScreenTakeOver = false;
}
}

FLVPlayback component is bugy, and to make (xyz.fullScreenTakeOver = false) work, then it must be excuted before the FLVPlayback instance is TRULY added to the stage. So, you can not do that by just adding the code (xyz.fullScreenTakeOver = false) to the same frame where the xyz instance of the FLVPlayback is added to the stage. The above code will solve this problem. Make sure that the video played by the FLVPlayback component is in the same folder of the resulting compiled SWF or EXE file. If you are using FLVPlayback with skin, then make sure the generated skin SWF file is in the same folder of your main SWF file. Hope this will help some people.