As for preloaders, it's basicly something (very small in size), some text as LOADING..., some info boxes displaying the percentage of the movie already loaded, or even some small animation in a movie clip, aimed at getting something fast on the screen so the user isn't let to believe that your movie ain't working. Some movies can be very large in size and the bigger they are, the longer they take time to download on your machine. The preloader will inform the user that's something is happening but that he has to wait for the downloading process to finish.
When the movie is somewhat completely downloaded, the preloader sort of intructs the movie to play, without the probable interruptions you would go through if you didn't have a preloader.
Please also note that this preloader is usually only seen once. On a second visit to your site, since the movie is already downloaded to the user's machine, (s)he will not see it again and the movie will start playing immediately, unless that user as emptied his cache or if you have deliberately set your html to re-download your movie on each visit.
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