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css flash objects overlap when window is resized?

Edit: You've also told the SWF Object to not scale the content, which when combined with no minimum size forces overlap.

You have not dictated a minimum size for the window (or say, body element or a div element) so the browser does not know it needs to produce scrollbars at any particular resize point. Since the browser continues to shrink your SWF, the SWF repositions its elements at the smaller and smaller sizes until they overlap. This isn't strictly a flash problem, but a CSS problem.