Cannot receive response from socket server when on localhost in AS3

Question

I have problems with my flash AS3 project. I'm in my last stage of productions which is to deploy it to our webserver. But the problem is, once the SWF is deployed on web server (Web server is XAMPP) and accessed through localhost, it stops from receiving any data from the socket server.The socket server is a java app based on JDK6. But when I try to run the SWF from Flash CS6 (By pressing CTRL + Enter), it receives the data from server. So I'm suspecting my Flash embedded object tags to have some misconfiguration. Here's my embedded object tag.

<object classid="clsid:d27cdb6e-ae6d-11cf-96b8-444553540000" width="1000" height="700" id="vclass" align="top">
            <param name="movie" value="vclass.swf" />
            <param name="quality" value="high" />
            <param name="bgcolor" value="#ffffff" />
            <param name="play" value="true" />
            <param name="loop" value="true" />
            <param name="wmode" value="window" />
            <param name="scale" value="showall" />
            <param name="menu" value="true" />
            <param name="devicefont" value="false" />
            <param name="salign" value="" />
            <param name="allowScriptAccess" value="sameDomain" />
                            <param name="allowNetworking" value="all" />
            <!--[if !IE]>-->
            <object type="application/x-shockwave-flash" data="vclass.swf" width="1000" height="700">
                <param name="movie" value="vclass.swf" />
                <param name="quality" value="high" />
                <param name="bgcolor" value="#ffffff" />
                <param name="play" value="true" />
                <param name="loop" value="true" />
                <param name="wmode" value="window" />
                <param name="scale" value="showall" />
                <param name="menu" value="true" />
                <param name="devicefont" value="false" />
                <param name="salign" value="" />
                <param name="allowScriptAccess" value="sameDomain" />
                                    <param name="allowNetworking" value="all" />
            <!--<![endif]-->
                <a href="http://www.adobe.com/go/getflash">
                    <img src="http://www.adobe.com/images/shared/download_buttons/get_flash_player.gif" alt="Get Adobe Flash player" />
                </a>
            <!--[if !IE]>-->
            </object>
            <!--<![endif]-->
        </object>

Answer 1

It's most likely a crossdomain policy file issue! Have you got it on your server?
Read up on it here Cross-domain policy for Flash movies and here Cross-domain policy file specification