Anyone interested in using flash and also creating a successful SEO campaign - Check this article out. It's a must.
This is an excellent example of how to and how not to use Flash on a website that is looking to gain traffic or to conduct SEO. The biggest no-no's for Flash is to have a 100% flash based website. It is a large topic of discussion in the SEO community - whether or not Google and the other large search engines (MSN, Yahoo, ASK) pick up on difficult-to-impossible coding technologies (IE: Flash and Javascript). Until search engines are 80% or more accurate at searching these types of files/code, there is no reason to adopt them. It may work in the longterm or it may not, one thing is for sure, simple is better.
Although I hate eye sores, you know, those websites made all of text with about 30 colors, many of them do extremely well and it is not because of their design. Think about it for a second, those websites are extremely thin, little to no hinderances in terms of code and visible content, thus search engines can better read and spider (AKA: scan) websites. This in turn improves the success of an SEO campaign or effort.
In my opinion, I don't refrain from using images, flash or javascript. I just offload javascript to external files, minimize the lines of code those external references take on a page, use a reasonable amount of images (roughly 10-20% of the page), and no more than 30% of flash is used on a page. When imbedding navigation into flash, I always double it up with either image links with alt attributes or straight-up text links (preferred).
Read the article for a bit more insight into this topic. I know you will find it useful and perhaps a great learnings opportunity.
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