On June 30, Google posted detail on the their improved indexing of Adobe Flash files, specifically SWF files of all kinds, according to Rod Adler and Janis Stipins — Google software Engineers. They go on to say that all of the text that users can see will be indexed, as well as the URLs in that text.
They also point out that this applies only to contextual text and that they will not recognize or index text or links within an image. Nor will they index FLV files, such as many videos on You Tube, as those files do not contain text elements.
The best part of this is that webmasters need take no special action to ensure their flash files are read. The engineers created an algorithm that explores the files, just be sure that the content in those files is information you want indexed and if not, embed that detail in an image, making it invisible to Google.
They continue to have limits on their technical ability. For further details, check out the Google Webmaster Central blog.