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I guess its just a regular transparent swf (wmode=transparent) but they're playing on2vp6 (flash8+) video content with an alpha channel.
Thanks GWD, can you be a little more specific as my HTML coding skill is of the rookiest. where exactly do i type that (wmode = transparent) thingie?
It's part of the <OBJECT> tag in the HTML code. Just look for the PARAMs area and add WMODE=TRANSPARENT
You may also be interested in looking at the FlashObject method of inserting your Flash in the HTML (or even UFO method)
Sorry I assumed (wrongly) that your question was more video-related because it was a video example (which I don't think I've seen done that way over html before - it requires additional effort with the video to achieve transparency as well). There's plenty of examples of the regular stuff.
If you want to know how to do the transparent video part there's a tutorial here: