OK, my last attempt to simplify
I repeat
"file=http://IP:port/path/stream.flv"
file={location or path}/{file name.ext}
The player in your case JW, needs to know what the file is called and where it can be found. The Player is expecting to stream a file from a specified location. The player also needs the (its) java files to be be pathed and located in the same (or specified) folder.
So if you put all the JW files in your web root folder they will not need a path. If you direct your stream from VLC like
http://IP:port/stream.flv
Then there is no folder in the path..... So there would not be a /path/... or /mediaplayer/ or /someplace/ or whatever .
The specified output in VLC for Flash is .flv format, as you may/should expect. Perhaps see
http://wiki.videolan.org/Flash_Video
VLC outputs in this way to allow a player (Eg JW) to see the VLC output a file. Perhaps you should accept this as a method that works by design rather than require a definitive explanation.
I do not wish to be rude, but you really do need to try a bit harder to understand some of the basic ideas. Just take it gently step by step and the logic and sense of it all and it will start to take shape, then you can do more and more as you grasp each new gem.
If you want someone to write specific HTML taylored to just for you to suit your unique individual needs, I suggest you use a local specialist.
Again, good luck and read the docu carefully