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Best way to improve Flash video on web :
1) increase throughput from network card to internet pipe (ie get a bigger throughput GigaBit Ethernet for example) this is expensive
2) set up a streaming server and "truly" stream the vids.
3) Reduce sound quality
What format are your vids in? We do a lot of commercials on the web (taking video and putting it in flash for online ads) and i never use .flv's, what i do is actually import the movie into a .swf. With a bit of tweaking i can manage to get the filesize roughly the same as the video, but it always runs better because the .swf has better compression built into it.
Even though it does not stream it, it still reads ahead and allows caching (naturally) so the performance is improved. May be worth a look at.
hth,
mcm