How does multiplayer work without downloading files?
CND utilizes an often overlooked aspect of Flash, which is socket server connections. A Socket server connection allows clients to be connected directly to a server, sending packets to the server whenever needed, and more importantly, allowing the server to send packets to the client. If you understand how to set up a webserver and how to code in PHP and Actionscript, then you can learn more about using socketservers here. Theres lots of other resources you can find as well using a search engine.