Here is a fictionalized but essentially accurate conversation about Flash being indexed by the search engines:
{Meeting Room at SES}
Flash Developer: I understand that Macromedia has released a set of programs that will allow Flash to be accessible to search engines.
Search Engineer: Yes, that's true, we've looked at it.
Flash Developer: So the search engines can index Flash, right?
Search Engineer: Technically, yes, even without the kit, in the same way we can index PDF and other non-HTML documents, but...
Flash Developer: Yippee! My job is saved!
{Flash Developer runs out of room to tell all his friends and blog about it}
Search Engineer: But... As I was saying, the vast majority of Flash content is not indexable and takes up a huge amount of bandwidth for very little gain in the relevancy of the SERPS, therefore although we CAN index it, we DON'T index it...Hey, where'd he go?
Audience Member: He went to go generate a bunch of work for SEO's...