Phantom preloader

I’m a little ashamed to bring these kind of things up as they are probably terribly simple. I’ve got a preloader which doesn’t work and I can’t figure out why. When I load the page in the browser the whole website is loaded in one go before the first frame of the swf is ever even visible. I’m not sure if this is a problem with the publish settings or if I’ve just put the preloader on the wrong way.

Would any of you mind having a look and seeing if you can see some obvious mistakes I’ve made?

Any help would be grand.