Thomas Higgins points us Director fanboys to an article by the Flash Player Product Manager about changes in XP SP2. Having had SP2 (the RC's) installed on my TabletPC for some time, most of what Waleed Anbar says isn't new. In his article, he mentions the Local Machine Zone Lockdown. Basically what this means is that you get an extra two (!) warnings if you use ActiveX content in local files, such as publish preview pages from Flash and Director, and pages from browser based CD-Roms.
Fortunately there's a workaround to avoid these extra security dialogs. Just add the following line to your document, preferrably straight after the document type declaration, and XP SP2 thinks the page came from some webserver and is save.
<!-- saved from url=(0017)http://localhost/ -->
I don't quite get the rationale (since when is content I got from some webpage safer than content I created on my own machine?), but it works.