Does replacing an object with Flash cause the Flash SWF file to be exported with my web page?

Clicking on Replace with Flash from the Placeholder | Web Properties dialog and selecting the Flash (.SWF) file you wish to insert automatically causes the flash file to be copied into "_files" folder.

For example, if you save your document as "Design1.web", the folder named "Design1_web_files" is created alongside this file and all the embedded files used with placeholders (both Flash and images) are copied there. Exporting causes the embedded files to be copied to the website files folder.

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