Heres what I changed to make it work:
* reloaded the .swf and .fla files just to make sure they were working properly
* in head.tpl I changed
- the version number from 6,0,0,0 to 6,0,29,0
- added /> at the end of each PARAM NAME, and made the VALUE & EMBED src ="/xcart/skin1/images/xlogo.swf" instead of ="{$ImagesDir}/xlogo.swf
Code:
<TABLE border="0" cellpadding="0" cellspacing="0" width="100%">
<TR>
<TD>
<OBJECT classid="clsid:D27CDB6E-AE6D-11cf-96B8-444553540000" codebase="http://download.macromedia.com/pub/shockwave/cabs/flash/swflash.cab#version=6,0,29,0" WIDTH="1000" HEIGHT="184" id="xlogo" ALIGN="">
<PARAM NAME="movie" VALUE="/xcart/skin1/images/xlogo.swf" />
<PARAM NAME="quality" VALUE="high" />
<EMBED src="/xcart/skin1/images/xlogo.swf" quality=high WIDTH="1000" HEIGHT="184" ALIGN="left"
TYPE="application/x-shockwave-flash" PLUGINSPAGE="http://www.macromedia.com/go/getflashplayer"></EMBED>
</OBJECT>
</TD>
There might have been some other things aswell but these are the main things I remember. Goodluck!