Hi dbruiz,
Usually, as far as Flash is concerned, converting your movie
into AVI and embedding it into Flash works well for both the audio
and video. As far as demuxing the audio, I would advise that you
try to minimize sound compression if possible as this can cause
some audio lag if the video were embedded in Flash.
Although as far as best quality for audio and video in Flash
for use in Breeze, FLVs would be my best recommendation, I'm kind
of biased since I worked with Flash for some time.
As for the SWFs not playing in PowerPoint, if you have
FlashPlayer 9, please contact us via the support page so we could
check if we could provide any additional insight for you or check
what is wrong with the SWFs in PowerPoint.
Btw, you can check if you have FlashPlayer 9 by going to the
link below:
http://www.adobe.com/go/tn_15507