Flash CS3 component creation : introduction

To start with, I must say, it was really a good as well as tough time for me, creating my first CS3, component.Good is the way it let me study a lot of blogs, Adobe live docs, Adobe Devenet and a lot of trial and error.It was fun.Tough came in the way when almost all references say a little and when stuck in a problem, I have to re-search and find out. There was no direct reference available to it.But I read the links and articles (mentioned at the end of this topic) at least 10 times each.

Well, lets come directly to the point. One can create Flash CS3 component in several ways. What I mean here is from the root only Flash CS3 supports 2 kinds of components.
1. Pre-compiled Components (SWC components)
2. FLA-based components