There are no workaround for the crossdomain file, it is required to support the crossdomain data access or crossdomain scripting. In the event of any cross-domain request, Flash will look for the crossdomain.xml file at the root of the domain. For example, if you are requesting an XML file from:
http://mysubdomain.mydomain.com/fu/bar/
Flash will check if a crossdomain.xml file exist at:
http://mysubdomin.mydomain.com/crossdomain.xml
You can place the crossdomain.xml file in other location. However, when you ever need to load a crossdomain.xml file from a different location, you have to do it via Security.loadPolicyFile . Bear in mind that the location of this crossdomain have any impact on the security access you have. Flash will only grant access to the folder that contains the crossdomain and its child folders.
You may also want to read up on the security changes in Flash Player 10.