I would like to have 2 version of my games available - Version 1 is a free demo
version that can runs from the web. Version 2 would be the complete purchased
version which runs "standalone" and requires program registration to run. Is
this possible with an app developed with Flash MX 2004?

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FlashStudio Pro can create 'trial projectors' that require an activation key
to continue running. You can set your projector to expire after a certain
time, by a certain date or after a number of uses, require a p/w to run,
etc.

There are several other tools that can do similar.

SWiSHstudio http://www.swishzone.com ($49.95)
SWF Kit Express http://www.swfkit.com ($79)
Flash 'N Pack http://www.flashnpack.com ($89)
FMProjector http://www.flashants.com ($129)
Jugglor http://www.flashjester.com ($129)
SWF studio http://www.northcode.com ($139)
ICE Projector http://www.flashants.com ($188)
SWF Kit standard http://www.swfkit.com ($189)
Jugglor 2 std http://www.flashjester.com ($249)
Flash Studio Pro http://www.multidmedia.com ($249.99)
ScreenWeaver http://www.screenweavermx.com ($279)
SWF Kit Pro http://www.swfkit.com ($299)
Jugglor 2 pro http://www.flashjester.com ($396)

Flash Studio Pro is one of the move expensive .. you don't need to go to
that expense just to get a version that allows for trails, demos,
registration etc.. for example SWISHstudio does the same things as you
describe for Flash Studio Pro, and it is the cheapest of the projector
creators around (AFAIK).

--
All the best,
Jeckyl