One way to improve server code performance in Flash Media Server is to compile it as Bytecode. I really do not bother much about protecting code as, I feel it is the generousity of others who have not protected their code that has brought me thus far. Having said that it is also a good way to protect your server code if you so desire form peering eyes. In addition you can also archive your server code in the situation where you have more than one script managing the logic on the server. The tool to do this is the FAR executable, a compiler that comes with the FMS install. This tool gives you the options of compiling your *.asc files to *.ase bytecode and your files *.asc or *.ase into an archive that FMS interpretes. This archive is a *.far.
The method I detail below works in the Linux environment - If you use Windows the difference in syntax is nominal

1. Find the FAR executable, in Linux it is in the install folder. An easier way to get it is to untar the FMS package and look inside the root folder.
2. Place the FAR inside the folder of the scripts you want to compile
3. Open a Terminal and 'cd' to the directory.
 ayo@W34PON-X:~/IDE/Tools$ ./far
4. Compile your *asc file into a *.ase file
ayo@W34PON-X:~/IDE/Tools$ ./far -compile ./getbytes.asc
This compiles getbytes.asc into getbytes.ase
5. Deploy the *.ase file to the application on FMS instead of *.asc