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Listen for click, itemClick events, if click is fired without itemClick getting fired, set selectedIndex to -1
Set the navigateInSystemBrowser property of the HTMLLoader control on the creationComplete event of the HTML control.
Set up Weborb and deploy your .NET class into it. Use mx:RemoteObject to invoke methods on the .NET class from Flex.
On the File object, set its path to the folder you want using resolvePath or the default constructor. Then call browse(), browseForOpen(), or browseForSave() on it.