Well I may have figured it out after many headaches. Since the *-app.xml location is hard coded and cant be customized for each profile, there were some incompatible xml values left by another profile. It would have been nice if the error said that instead of a load of text completely unrelated to the issue.
If anyone knows how to set a custom location of the *-app.xml file for each profile in Flash CS5.5, I would love to hear it. I hate having to manually swap xml files every time I work on a different profile of the same app.



AIR LicenseManager Error