I primarily use Flash to publish videos to the web, using the fancy controllers and a few other goodies. But for some reason, I don't seem to understand the concept and with every video it seems like a trial and error method. Here are my steps:
1. Encode video the Flash 8 Encoder
2. Create new *.fla document and save it where my FLV is located
3. File > Import > Video
4. Go through all the selections
5. When video is on the stage, I simply go to File > Export > Movie
6. I select Flash 8 and give it a name
7. Create a new HTML page within Dreamweaver and Import the *swf movie.
8. Upload the SWF, the controller bar as well as the HTML page
It looks to me like you are encoding and re-encoding your video. If you are using Macromedia Flash 8 Video Encoder (your Step 1), that will make your FLV file. There is no need to import the FLV file into Flash file (your Step 3) since you can set the Flash file up to play the FLV without including it inside the Flash File. If you WANT the video inside the Flash file, then you don't need to do step 1, just import whatever your original file is into Flash (that is, your Step 3 is doing the same thing that your Step 1 is doing to the video, except it is bringing it into the FLA file in the process.)
The big advantange in Flash tho is that you don't have to encase your huge video file into the Flash document (and subsequently your SWF, making it large and slow to load) but you can keep your FLV video file separate from your SWF and have it progressively download while playing.