Actionscript 3 :: Debug Local Flash File With Preloader - Security Error

I have two Flash files: pre-loader and application.

Pre-loader: (D:ProjectsFlashAppsddedd.fla) is doing basically this:
var mRequest:URLRequest = new URLRequest("http://localhost/flash/dd.swf");
mLoader.load(mRequest);
}

Application file: (D:ProjectsFlashAppsdddd.fla) is the real application and among other things is doing this:

_loader.load(_request); //where _request = "assets/html/style.css".

When debugging the pre-loader, at this point I am getting an error which says:

SecurityError: Error #2148 File SWF http://localhost/flash/dd.swf cannot access local resource file:///D|/Projects/FlashApps/dd/assets/html/style.css.

The application must be loaded by the pre-loader, it won't start when called directly. But apparently, the security settings are preventing such duo from being possible to debug. Normally when it is on a remote server, it is working ok.

What I have done so far to resolve it:

Added crossdomain.xml to my local i:xampphtdocs folder:

> <?xml version="1.0"?>
> <!DOCTYPE cross-domain-policy SYSTEM "http://www.macromedia.com/xml/dtds/cross-domain-policy.dtd">

[Code]....

Set File > Publish Settings -> Local Playback Security -> "Use local files only" in both files. It didn't work, so I set it to "Use network only" Also didn't work.

What else can be done to be able to debug these Flash files locally?