Spudnik187,
Capabilities.languages is referring to a setting in Air 1.1, which
added localization and multilingual support. You'll have to download
the latest Adobe AIR SDK from Adobe's site, but if you're using Flex
Builder you can follow this helpful article:
http://www.adobe.com/devnet/flex/articles/flex_air1.1.html
Another tip: after fixing that, you may encounter the error "Unable to
resolve resource bundle 'resources' for locale "en_US." This is the
compiler complaining that it cannot locate the proper directory for
locale files. You'll have to go to the project's properties and add "-
source-path=locale/{locale}" (w/o the quotes) to "additional compiler
arguments."
Hope this helps,
Dan