Google and Yahoo have been working with Adobe to make flash files (SWF) indexable by their robots. Previously web pages would be found and the meta data and other content around the flash file would be found and stored, but no the content of the file will also be picked up.
MSI Comments
Previously the issues with indexability of flash had meant that, from an SEO point of view, many website agencys recommended steering clear of flash. It was only the design agencys and a few others that persisted. In reality this still doesn't mean that you should rush out and purchase the "nice" looking flash website. The web user will still need to start at the begining and work through the images, rather than being able to jump to the point they need. The general user experience in most flash websites is poor, unless a lot of time and effort goes into it.
In real terms a standard website provides a better user experience for the vast majority of sites. Flash is a rich media that should be used sparingly to enhance the website not replace good quality functionality. Remember, although we live in a world of broadband you still need to provide a fast loading web page at peak times. When the UK teenage population is downloading last nights episode of Hollyoaks, your website still needs to load in low single digits.