Very nice for your first time around.
Hm strange thing about this pre-loader... the bar was full blue all the time, but the browser bar was actually the one showing the loading. You also said in your Author's notes: "This is my first flash movie (It's also a sprite movie) so don't expect too much from it. " How could you put down the caliber of some sprite movies like that? Rise of the MK is a great sprite flash, and Rigo's (Cheveloco) Megaman Final Battle and Bass' Revenge series is amongst some of the best sprite animation I have ever seen. You could even check out my bro and I's flash in NG under the name of "Kingdom Sprites" (I don't think it's anywhere near as good as Cheveloco's stuff though).
Anyway, the movie: Right off the bat you need to slow down the scrolling text in the intro. The paper piece with the text was a nice effect but it goes by way too fast. Next thing, you added a Crystal Chronicles song, you lose huge points on adding song from such a shameful game with such shameful music (yes I had a bad experience with that retarded FF for GC). In addition the fighting is much too fast-paced and repetitive. I have to admit though, your movie has some excellent effects like characters that have facial expressions and some pretty nice backgrounds. You even have a lil' Final Fantasy-ish map laid out and labeled, very nice. I have to frown upon you for using Sephiroth as a sort of summon... it's pretty tacky. At first I thought the flash me n' my bro made was a bit saturated in Final Fantasy music (even though Uematsu's compositions kick ass) but you clearly over-did it. All in all I have to hand it to you, pretty decent first-flash, just make sure you keep little defects in check, it's the little things that amount to something big and avoid repetition as much as possible. Oh one more thing, I noticed that you crammed quite a lengthy feature into the flash, awesome compression, I can't thank you enough for that.