Here is validated XHTML embed object that is pulling in a video from a XML file. Thank you @jadoux about the base parameter.
<object type="application/x-shockwave-flash" width="516" height="321" data="https://www.yourdomain.com/flashfolder/container.swf">
<param name="movie" value="https://www.yourdomain.com/flashfolder/container.swf" />
<param name="wmode" value="transparent" />
<param name="base" value="https://www.yourdomain.com/flashfolder/" />
</object>
