Any thoughts on this?

Above Problem Solved. (Updated)

Read the Flex 3.3 SDK
http://www.adobe.com/support/documentation/en/flex/3/releasenotes_flex3_sdk.html

You need to:
1. Download Flex SDK zip file.
2. Uninstall current Flash Player.
3. Install Flash Player from /runtimes/player/10/win/

Thanks to the Flex Community(Michael Borbor).

Get free Flex Builder 3 Professional for education

<?xml version="1.0" encoding="utf-8"?>
<mx:Application
    xmlns:mx="http://www.adobe.com/2006/mxml"
    layout="absolute" xmlns:components="components.*" viewSourceURL="srcview/index.html"> 

    <mx:Script>
        <![CDATA[
            private var fileRef:FileReference;

            private function selectFile():void
            {
                fileRef = new FileReference();
                var fileFilter:FileFilter = new FileFilter('Image', '*.jpg');
                fileRef.addEventListener(Event.SELECT, selectHandler);
                fileRef.addEventListener(Event.COMPLETE, completeHandler);
                fileRef.browse([fileFilter]);
            } 

            private function selectHandler(event:Event):void
            {
                fileRef.removeEventListener(Event.SELECT, selectHandler);
                fileRef.load();
            } 

            private function completeHandler(event:Event):void
            {
                fileRef.removeEventListener(Event.COMPLETE, completeHandler);
                img.load(fileRef.data);
            }
        ]]>
    </mx:Script> 

    <mx:Canvas
        x="0" y="40" width="710" height="295"
        borderStyle="solid" borderColor="#303030"
        backgroundColor="#404040"> 

        <mx:Image id="img"/> 

    </mx:Canvas> 

    <components:GradientBox
        y="1"
        gradientFrom="#F9F9F9"
        gradientTo="#DFDFDF"
        borderColor="#303030"
        width="710" height="40"
        verticalAlign="middle" paddingLeft="10"> 

        <mx:Button
            label="Select File"
            click="selectFile()"/> 

    </components:GradientBox> 

</mx:Application>