I have two servers. Server A is an internal server that has access from the outside world set up here in my office. It has a Rails server running on it. I have a second serv
Make sure the mime type of crossdomain.xml is set to application/xml. Flash will not load the policy file if the mime type isn't set correctly. Checkout CloudBerry's free s3 client, it's pretty good at detecting/setting the correct mimetype, its possible the s3 client you're using didn't set it correctly.
Edit: Apache, and other webservers, detect a file's mime type and return it in the response headers - so this issue doesn't normally come up in local testing