In order try the to run the Uploader locally (e.g. to try the sample code, or to test your own implementation), you will need to make some minor modifications to your Flash settings in order to allow the Flash component to run with out a server:
/src/webapp/lib/swfupload/flash/directory that contains the swfupload.swf file
Running the Uploader locally without a server is officially an invalid configuration for anything other than UI development and testing. The browsing portion of the workflow is fine, but the upload portion is done with smoke and mirrors and fakery. Do not do QA while running locally.
For more information, see the
Readme.txt file included with the Uploader sample code: