FLA for the Balloonatroid demo should be saved with backward compatibility in mind.
The FLA project file was saved in Flash CS3. There are still many Flash users who haven't made the jump (and spent the $$$) to CS3.
Recommend saving to the lowest common denominator which is Flash 8 FLA project file.
Also, I believe that Flash 8 Professional is required to develop for Flash Lite 2. It might be useful to add this in the notes.