The default setting is generally the best approach for publish settings. The publish settings often give the mistaken impression that the flash file will automatically adapt to the end users resolution. This is not the case. In order to have a true resolution friendly application, you need to account for the end users resolution and not how the file is published. Generally, this entails checking the users resolution settings and loading an appropriatly sized file for their settings...
Once the users settings are determined, you can use a conditional statement to determine what file to load...
The scaleMode setting indicates the current scaling of the SWF file within Flash Player and is not based on user resolution settings.
A mind once stretched by a new idea never regains its original dimensions.
- Oliver Wendell Holmes