I am using WP 2.9.1 and when I placed the swf file in the recommended place, I was asked for a password when it ran. Presumably this was because there are .htaccess and .htpasswd files in that folder.
I placed the swf file in /wp-content/imagerotator.swf and explicitly entered the path in the ‘Path to the Imagerotator (URL):’ field on the options page instead of pressing ‘Search Now’ (which failed to find the file). Slideshow works fine for me.
