Sorry for the reply delayed.
Sothink Video Encoder for Adobe Flash can not convert flv file to swf format, it can only convert video format file to flv or swf format. Hope you can understand.
Referring to the watermark function, current version of the program does not have this function. We will forward it to our program developer to take it into consideration in future release of the program.
If we have any news on this issue, we will let you know soon.
Thanks for your understanding and have a ncie day.