package  {
		
	import flash.display.Bitmap;
	import flash.display.BitmapData;
	import flash.display.Sprite;
	
	import flash.events.Event;
	
	import flash.text.TextField;
	import flash.text.AntiAliasType;
	import flash.text.GridFitType;
	import flash.text.TextFieldAutoSize;
	import flash.text.TextFieldType;
	import flash.text.TextFormat;
	import flash.text.TextFormatAlign;
	
	import flash.display.Loader;
	import flash.errors.IOError;
	import flash.events.ProgressEvent;
	import flash.display.LoaderInfo;
	import flash.display.DisplayObject;
	import flash.net.FileFilter;
	import flash.net.FileReference;
	import flash.net.FileReferenceList;
	import flash.net.URLVariables;
	import flash.net.URLLoader;
	import flash.net.URLRequest;
	import flash.net.URLRequestMethod;
	import flash.net.URLLoaderDataFormat;
	import flash.net.URLRequestHeader;
	import flash.events.Event;
	import flash.events.MouseEvent;
		
	public class ImageUploader extends Sprite {
		
		//public static const containing all loaded images
		public static var IMAGES:Array = [];
		
		//some event constants
		public static const EVENT_IMAGE_LOADED:String = "eventImageLoaded";
		
		//private vars
		private var bg:Sprite;
		private var uploadbar:Sprite;
		private var label:TextField;
		
		//actual image
		private var _image:Bitmap;
		protected var fileRef:FileReference;
		
		public function ImageUploader() {
			
			/*
			Author: Chrysto Panayotov ( burnandbass [@] gmail [dot] com )
			All images are stored in static ImageUploader.IMAGES array
			you can listen for ImageUploader.EVENT_IMAGE_LOADED event - fired when the image is loaded
			
			usage
			
			var upload1:ImageUploader = new ImageUploader();
			upload1.x = 100;
			upload1.y = 20;
			addChild(upload1);
			
			upload1.addEventListener(ImageUploader.EVENT_IMAGE_LOADED, function():void{
			 var image:Bitmap = upload1.image;
			 image.y = 70;
			 image.x = 10;
			 addChild(image);
			});
			
			*/
			
			this.mouseChildren = false;
			this.buttonMode = true;
			
			bg = new Sprite();
			bg.graphics.beginFill(0x00ffff,0.7);
			bg.graphics.drawRoundRect(0,0,170,40,10,10);
			bg.graphics.endFill();
			addChild(bg);
			
			var _format:TextFormat
			_format = new TextFormat();
			_format.font = "Helvetica";
			_format.color = 0x0000;
			_format.size = 14;
			_format.align = TextFormatAlign.CENTER;
 			
			label = new TextField();
			label.embedFonts = false;
			label.antiAliasType = AntiAliasType.ADVANCED;
			label.autoSize = TextFieldAutoSize.CENTER;
			label.multiline = false;
			label.cacheAsBitmap = true;
			label.selectable = false;
			label.text = "upload image";
			label.defaultTextFormat = _format;
			label.setTextFormat(_format);
			
			label.y = 5;
			label.width = this.width
			
			addChild(label);
			
			uploadbar = new Sprite();
			uploadbar.graphics.beginFill(0xffffff,1);
			uploadbar.graphics.drawRect(0,0,this.width - 30, 2);
			uploadbar.graphics.endFill();
			uploadbar.x = 15;
			uploadbar.y = 30;
			uploadbar.scaleX = 0;
			addChild(uploadbar);
			
			fileRef = new FileReference();
			fileRef.addEventListener(Event.SELECT, onFileSelect);
			
			this.addEventListener(MouseEvent.CLICK, chooseFile);
		}
		
		private function chooseFile(event:MouseEvent):void{
			this.removeEventListener(MouseEvent.CLICK, chooseFile);
			label.text = "image uploading";
			fileRef.browse([new FileFilter("Images (*.jpg, *.jpeg, *.gif, *.png, *.JPG)", "*.jpg;*.jpeg;*.gif;*.png; *.JPG")]);
		}
		
		protected function onFileSelect(event:Event):void {					
			this.buttonMode = false;
			fileRef.removeEventListener(Event.SELECT, onFileSelect);
			fileRef.addEventListener(Event.COMPLETE, onFileLoad);
			fileRef.addEventListener(ProgressEvent.PROGRESS, reportProgress);
			fileRef.load();
		}
		
		private function reportProgress(event:ProgressEvent):void{
			this.dispatchEvent(event.clone());
			if(event.bytesLoaded > 1){
				this.alpha = 0.9;
			}
			uploadbar.scaleX = (event.bytesLoaded / event.bytesTotal);
		}
		
		protected function onFileLoad(event:Event):void {
			fileRef.removeEventListener(Event.COMPLETE, onFileLoad);
			var image:Loader = new Loader();
			image.loadBytes(fileRef.data);
			image.contentLoaderInfo.addEventListener(Event.COMPLETE, onImageParse);
		}
		
		protected function onImageParse(event:Event):void {
			label.text = "image uploaded";			
			var content:DisplayObject = LoaderInfo(event.target).content;
			_image = Bitmap(content);
			
			IMAGES.push(_image);
			
			this.dispatchEvent(new Event(ImageUploader.EVENT_IMAGE_LOADED));
			
			//addChild(_image);
			//_image.y = 100;
		}
		
		//getters
		
		public function get image():Bitmap{
			return _image;
		}
		
	}//end	
}

package  {
		
	import flash.display.Bitmap;
	import flash.display.BitmapData;
	import flash.display.Sprite;
	
	import flash.events.Event;
	
	import flash.text.TextField;
	import flash.text.AntiAliasType;
	import flash.text.GridFitType;
	import flash.text.TextFieldAutoSize;
	import flash.text.TextFieldType;
	import flash.text.TextFormat;
	import flash.text.TextFormatAlign;
	
	import flash.display.Loader;
	import flash.errors.IOError;
	import flash.events.ProgressEvent;
	import flash.display.LoaderInfo;
	import flash.display.DisplayObject;
	import flash.net.FileFilter;
	import flash.net.FileReference;
	import flash.net.FileReferenceList;
	import flash.net.URLVariables;
	import flash.net.URLLoader;
	import flash.net.URLRequest;
	import flash.net.URLRequestMethod;
	import flash.net.URLLoaderDataFormat;
	import flash.net.URLRequestHeader;
	import flash.events.Event;
	
	//import com.greensock.TweenLite;
	import flash.events.MouseEvent;
	
	public class ImageUploader extends Sprite {
		
		//public static const containing all loaded images
		public static var IMAGES:Array = [];
		
		//some event constants
		public static const EVENT_IMAGE_LOADED:String = "eventImageLoaded";
		
		//private vars
		private var bg:Sprite;
		private var uploadbar:Sprite;
		private var label:TextField;
		
		//actual image
		private var _image:Bitmap;
		protected var fileRef:FileReference;
		
		public function ImageUploader() {
			
			/*
			Author: Chrysto Panayotov ( burnandbass [@] gmail [dot] com )
			All images are stored in static ImageUploader.IMAGES array
			you can listen for ImageUploader.EVENT_IMAGE_LOADED event - fired when the image is loaded
			
			usage
			
			var upload1:ImageUploader = new ImageUploader();
			upload1.x = 100;
			upload1.y = 20;
			addChild(upload1);
			
			upload1.addEventListener(ImageUploader.EVENT_IMAGE_LOADED, function():void{
			 var image:Bitmap = upload1.image;
			 image.y = 70;
			 image.x = 10;
			 addChild(image);
			});
			
			*/
			
			this.mouseChildren = false;
			this.buttonMode = true;
			
			bg = new Sprite();
			bg.graphics.beginFill(0x00ffff,0.7);
			bg.graphics.drawRoundRect(0,0,170,40,10,10);
			bg.graphics.endFill();
			addChild(bg);
			
			var _format:TextFormat
			_format = new TextFormat();
			_format.font = "Helvetica";
			_format.color = 0x0000;
			_format.size = 14;
			_format.align = TextFormatAlign.LEFT;
 			
			label = new TextField();
			label.embedFonts = false;
			label.antiAliasType = AntiAliasType.ADVANCED;
			label.autoSize = TextFieldAutoSize.LEFT;
			label.multiline = false;
			label.cacheAsBitmap = true;
			label.selectable = false;
			label.text = "upload image";
			label.defaultTextFormat = _format;
			label.setTextFormat(_format);
			
			addChild(label);
			label.y = 10;
			//TweenLite.to(label, 0, {x: (this.width - label.textWidth)/2 - 5});
			
			uploadbar = new Sprite();
			uploadbar.graphics.beginFill(0xffffff,1);
			uploadbar.graphics.drawRect(0,0,this.width - 30, 2);
			uploadbar.graphics.endFill();
			uploadbar.x = 15;
			uploadbar.y = 30;
			uploadbar.scaleX = 0;
			addChild(uploadbar);
			
			fileRef = new FileReference();
			fileRef.addEventListener(Event.SELECT, onFileSelect);
			
			this.addEventListener(MouseEvent.CLICK, chooseFile);
		}
		
		private function chooseFile(event:MouseEvent):void{
			this.removeEventListener(MouseEvent.CLICK, chooseFile);
			label.text = "image uploading";
			//TweenLite.to(label, 0.5, {x: (this.width - label.textWidth)/2});		
			fileRef.browse([new FileFilter("Images (*.jpg, *.jpeg, *.gif, *.png, *.JPG)", "*.jpg;*.jpeg;*.gif;*.png; *.JPG")]);
		}
		
		protected function onFileSelect(event:Event):void {					
			this.buttonMode = false;
			fileRef.removeEventListener(Event.SELECT, onFileSelect);
			fileRef.addEventListener(Event.COMPLETE, onFileLoad);
			fileRef.addEventListener(ProgressEvent.PROGRESS, reportProgress);
			fileRef.load();
		}
		
		private function reportProgress(event:ProgressEvent):void{
			this.dispatchEvent(event.clone());
			if(event.bytesLoaded > 1){
				this.alpha = 0.9;
				//TweenLite.to(this,1,{alpha: 0.9});
			}
			uploadbar.scaleX = (event.bytesLoaded / event.bytesTotal);
		}
		
		protected function onFileLoad(event:Event):void {
			fileRef.removeEventListener(Event.COMPLETE, onFileLoad);
			var image:Loader = new Loader();
			image.loadBytes(fileRef.data);
			image.contentLoaderInfo.addEventListener(Event.COMPLETE, onImageParse);
		}
		
		protected function onImageParse(event:Event):void {
			label.text = "image uploaded";
			//TweenLite.to(label, 0.5, {x: (this.width - label.textWidth)/2});
			
			var content:DisplayObject = LoaderInfo(event.target).content;
			_image = Bitmap(content);
			
			IMAGES.push(_image);
			
			this.dispatchEvent(new Event(ImageUploader.EVENT_IMAGE_LOADED));
			
			//addChild(_image);
			//_image.y = 100;
		}
		
		//getters
		
		public function get image():Bitmap{
			return _image;
		}
		
	}//end	
}

Use this class to create a simple upload-to-flash button. Select image from your local harddrive and upload it in flash, later you can get is as Bitmap() object
All images are stored in static array, so you can retrive it anywhere you want in your code!

AS3 - Load and display image in flash from local drive

file

ActionScript 3