The Chumby Network server sets a cache time of (I believe) 6 hours for widget movies, and the Flash player will honor those cache settings to the best of its ability, based on the available memory. This is done because widgets change *very* infrequently in the general case.
If we didn't cache widgets, then our bandwidth costs would go through the roof, and it's possible it would push some users over some bandwidth limits with their ISPs.
We added an ASnative call to the player to manually clear the cache, and this call is made when the "reload" button is used in the Control Panel, however, based on this thread, it appears that call is not working properly or the CP is calling it incorrectly. I'll ask QA to look into it.