wmode=transparent embed parameter is only required if the Flash contains (and uses) transparent sections and it is necessary for correct rendering to utilize transparency. The other performance killer is the quality embed parameter: setting it to best is most of the time an overkill and totally unnecessary. Unfortunately some Flash developers (and website maintainers) lack the knowledge/time/desire to tune their embed code for optimal performance and use these parameters even if they are not needed. Flash Performance Optimizer tries to fix these problems to give you a better user experience.
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