Now you can easily Import/Insert/Read any Text File contents to Flex TextArea and Display it with each and every line indentation in place.
The complete code is in the link below.
With this, you can import Text File (even .htm contents) into Flex TextArea if the file is viewable in Notepad. It really works for any text file [.txt, .htm, .xml, .as, .js or any other that you may have]
Interestingly this is a standard SWF file that gets generated as you compile the code in Flex 3 SDK. You can even use \\ to point to text file location. Example: C:\\WINDOWS\\system32\\oobe\\iconnect.js'. However, to do this, you have to add "-use-network=false" to Flex Compiler additional arguments before compilation.