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It worked earlier... but now it can't find the crossdomain.xml file. Anyways, what I found was that the video played quiet smoothly for me. I'm on a cable connection (5mbit) with a pretty modern computer.
Basically the only way in which I can see it skipping is if the Flash player struggling with the amount of transparency from the FLV file, or clogged tubes so that the video is having to buffer. You might be able to tweak the buffer settings on the video to load more before starting, lowering the bitrate a bit, or monitoring the CPU used by your browser when you're watching the video.
FLV file is roughly 9.15MB, which on a slow connection will definitely take some time to get going.
I'd suggest checking to see if you have the issue with skipping due to low bandwidth or possible CPU spikes on the client.
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