An attempt to gather all the information I tumble accross while researching for other things, that I will most probably need the next day or so and never find again, is to collect them herein this Post:

1. AIRconditioning, a brilliant pdf summarising many of the most usefull and needed features of AIR.
2. Encrypted Local Data. by Kevin Hoyt

One of the first big challenges in building an Air application, that is supposed to be functional on and off line, is the entry point into the application, the login. In this Post, I will explain how I built the Login for an application, including use of shared local objects, that logs the user also in, when he is offline. To give the user the minimum security, I will use for the Login the encrypted local store feature in Adobe AIR

If Beta 1 is installed, there are some orphan files that needed to be removed.

(Windows) HD:\Program Files\Adobe\Adobe Flash CS3\<lang>\First Run\Commands\
(Mac) HD:/Applications/Adobe Flash CS3/First Run/Commands
AIR - Application and Package Settings.jsfl
AIR - Package AIR File.jsfl

(Windows) HD:\Document and Settings\<username>\Local Settings\Application Data\Adobe\Flash CS3\<lang>\Configuration\Commands\ or
(Mac) HD:/Users/<username>/Library/Application Support/Adobe/Flash CS3/<lang>/Configuration/Commands/
AIR - Application and Package Settings.jsfl
AIR - Package AIR File.jsfl

Further, according to the Adobe website,  you first have to install plugin 9.0.2, then the AIR runtime, and at last plugin 9.0.3.

Adobe has launched AIR version 1 and Flex 3. After some time in Beta, this is now a final release. With it comes a new plugin for Flash CS3, that has to be downloaded for developing AIR application within the Flash IDE.