Inglor,
You post at a very innoppotune(sp?) time.
here's a suggested solution: http://osflash.org/doku.php?id=flashcoders
:undocumented:flash8
Look for FileReference() and setPixel(), flash's loadMovie only nativel handles progressive jpgs, I don't know how fast the new solution to be if you can convert images to XML. Flash is really sandboxed for security reasons, there's is really not much of a workaround except to purchase more flash things like FlashCom server which has it's own protocol (RTMP) for transferring media, it's not UDP based so it's not as fast but it's reliable at transferring data.
Flash Studio 8 might not be out but MTASC 1.09 compiles swfs.
I loaded dynamic images using the java Robot Class (to output progressive jpgs) with Java sockets: one server and one client then loaded it with a simple loadMovie;
and again, what does it matter if you're teacher doesn't know any actionscript?