Well i was able to find out more information on the .swd file. It is primarily for debugging purposes. You could debug it locally, or remotely. The answer to that was right in the help files of flash. Didn’t know what to look for until i saw in the os that the file was for debugging. Any how… for any one having the same problem here is the answer to that.
Debugging a SWF file from a remote location
You can debug a remote SWF file using the stand-alone, ActiveX, or plug-in versions of Flash Player. When exporting a SWF file, you can enable debugging in your file and create a debugging password. If you don’t enable debugging, the Debugger will not activate.
When you export, publish, or test a movie, Flash creates a SWD file that contains debug information. To debug remotely, you must place the SWD file in the same directory as the SWF file on the server.
To enable remote debugging of a Flash movie:
Select File > Publish Settings.
On the Flash tab of the Publish Settings dialog box, select Debugging permitted.
To set a password, enter a password in the Password box.
After you set this password, no one can download information to the Debugger without the password. However, if you leave the Password box blank, no password is required.
Close the Publish Settings dialog box, and select one of the following commands:
Control > Debug Movie
File > Export Movie
File > Publish Settings > Publish
Flash creates a debugging file with the .swd extension and saves it alongside the SWF file. The SWD file contains information that allows you to use breakpoints and step through code.
Place the SWD file in the same directory as the SWF file on the server.
If the SWD file is not in the same directory as the SWF file, you can still debug remotely, but the Debugger ignores breakpoints and you can’t step through code.
In Flash, select Window > Development Panels > Debugger.
In the Debugger, select Enable Remote Debugging from the Options pop-up menu (at the upper right of the panel).