Recently I have been updating some older Flash Catalyst 1.0 projects to work in the latest version. I have previously documented a few of the changes you might need to make. Most updated with out a problem. But I recently was updating a project that had a SWF animation included in the project. I brought the project into Flash Builder and applying the other updates. I then tried to export the project, and I received a warning about “Unexpected child: “swfcontroller1″. Expected a compatible visual component”. Ugh.
Luckily, the fix is fairly simple. In Flash Catalyst 1.0, SWF content was displayed using the <fclib:SWFController> tag. This component is no longer supported in the new version of the SDK. So, instead we need to use the <s:MovieClipSWFLoader> tag. I would recommend adding an id attribute (which may not be present in the <fclib> version. The rest of the attributes should be identical. And with that quick edit, my project exported just fine.
Hope this helps!