are you putting the code in a file or in the template?
im using it on the template.
here is the script
<OBJECT classid="clsid:D27CDB6E-AE6D-11cf-96B8-444553540000" codebase="
http://download.macromedia.com/pub/shockwave/cabs/flash/swflash.cab#version=6,0,0,0" WIDTH="634" HEIGHT="476">
<PARAM NAME=movie VALUE="
http://10.0.0.1:35555/123flashchat.swf?init_user=%user%&init_password=&init_room=1">
<PARAM NAME=quality VALUE="high">
<PARAM NAME="menu" value="false">
<EMBED src="
http://10.0.0.1:35555/123flashchat.swf?init_user=%user%&init_password=&init_room=1" quality=high menu=false WIDTH="634" HEIGHT="476" TYPE="application/x-shockwave-flash" PLUGINSPAGE="
http://www.macromedia.com/go/getflashplayer">
</EMBED>
</OBJECT>
the %user% for the username accepts fine. but how about the password? i have tried %password% and %pass% but its not accepting.