URL issue

I have kalturaCE running on my development server, everything works fine and all the examples also run.

I have the latest Simple Editor project running in Flex Builder 3, I've added php code to the start of the file and I'm able to get the flashvars loading and into the simple editor.

The UIConf loads, but as the editor attempts to load the thumbnails and videos I get a security sandbox error.

I have my hosts file set to www.kalturaserver.com on my dev server, and simpleeditor.swf is at the same domain, I get the follow sandbox error

Connection to http://www2.kalturaserver.com/p/1/sp/100/flvclipper/entry_id/8pn4jk92bc/... halted - not permitted from http://www.kalturaserver.com/TESTING/simpleeditor.swf

Why and how is the 2 in www2.kalturaserver.com getting added? I've tryed setting the crossdomain to "*kalturaserver.com" without any success.

Thanks