I need to upload a file and call a webservice method and save this file in database. But i am totally new to Flex and don't have a single clue how to achieve this? Can anyone guide me how to achieve this. What should i pass as URL if i need to just save in database?
You should pass the URL of the server side code you have written to process the uploaded file.
Personally, rather than guessing your way round this code I'd stop what you are doing and take a few days to learn about the basics of Flex. It will be much less painful in the long run.