I downloaded OSMF Sample player and opened osmf.html, (C:\player\osmf.html)it worked perfectly without any problem.
The same file when I deployed onto tomcat server,(http://localhost:8080/player/osmf.html) I get the error "The specified capability is not currently supported" while debugging.
I suspect of a flash security problem. Couldn't think of anything else.
Any help is appreciated. Thanks.
I was using DeMonster Debugger to figure out what was going on. Actually I was using ReOps' OSMF player. That was the one working when I launched from Filesystem, not working when deployed on to tomcat server. The reason is that they have written to code to see if it is allowed to access a video from a particular domain. For file, it was returning true all the time. But for the domain localhost:8080, it was returning false.
After disabling that security check, it worked normally.
Thanks Andrian for your answer.