Now maybe someone can help me out….
I’ve got the menu to work exactly how I want it. However, when I embed the Flash into and HTML page, it works great on my homepage but does not work in sub folders when it comes to Internet Explorer.
Example:
Menu works in: http://www.website.com/default.htm
Menu DOES NOT work in: http://www.website.com/subcategory/default.htm.
Keep in mind that I am simply saving http://www.website.com/default.htm to another area of the site, meaning that my .js, XML , and .SWF should be the same on my homepage and subcategory page.
Is this just an Internet Explorer bug or a problem with the Flash File? It seems to work perfect in Mozilla.

its probably a path issue i.e the xml can’t be found. In your embed code set a base URL