LZMA compression is a new feature since SWF version 13 (player version 11). There doesn't seem to be any public documentation available. The best documentation I have found is the source code in this blog post: http://blog.kaourantin.net/?p=124 This adds a new dependency on liblzma. Dailymotion uses LZMA compression
When LIGHTSPARK_PLUGIN_PARAMFILE is specified, its value is taken as a filename and the flashvars that the plugin gets are written to that file. The file can than be used with lightsparks '-p' switch.