JW Player 5.2 will run from file location, I tried it. I open this in browser:
file:///C:/inetpub/wwwroot/JW52/bin-debug/player.html
The player.swf is in the same location and is reference relative, not with absolute url. I am using swfobject. My html looks like this:
<html lang="en">
<head>
<meta http-equiv="Content-Type" content="text/html; charset=iso-8859-1" />
<title>player</title>
<script type="text/javascript" src="swfobject.js"></script>
</head>
<body>
<div id="player">
<a href="http://get.adobe.com/flashplayer/">Get the Flash Player</a>
to see this video.
</div>
<script type="text/javascript">
var so = new SWFObject('player.swf','mpl','480px','290px','9');
so.addParam('allownetworking','all');
so.addParam('allowscriptaccess','always');
so.addParam('allowfullscreen','true');
so.addParam('Flashvars','streamer=rtmp://localhost:1935/vod&file=mp4:sample.mp4&provider=rtmp');
so.write('player');
</script>
</body>
</html>
Richard