Writing your own flash player in AS is not that hard.
I did it, including flipping the picture, without knowing anything about AS on a lonley evening with a bottle of redwine and googling the basics about AS.
With netstream you can recieve the stream. Then you have to flip the picture with some settings ... was something like: x = -x and y = -y or something.
With the flip.swf: Did you consider using the crossdomain.xml?