Solution to my problem!

After much searching I finally found an answer on the Adobe website. I only added two additional steps and my video is now working in IE. I use Adobe Flash CS3 and Web Designer (which I love).

1) When defining the Parameter Source in Flash, make sure you use an absolute web address to your .flv file(i.e. "http://www.yoursite.com/index_htm_files/movie.flv").

2) Upload the movie.flv to that location.

Everything else can be done as directed. My movie ran with no problem after I included these steps.

Thanks to everyone who helped.