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You can not embed assets as runtime, but the browser might cache them for you.
What situation warrants embedding assets at runtime?
Embedding assets would be usefull anytime the user would like to save a personilized copy of the SWF to his/her local machine:
For example, the user inputs a specific image in a SWF at runtime and later on saves that SWF to his/her local machine. Whenever the user doubleclicks on the "saved" SWF, the image will be displayed.
Ok, I see some cases where that makes sense. I do not think that is probably the best approach just because of the nature of the web. If you are providing them the ability to save their work, you should get a hold of the assets on the server and recompile the swf as a finished product then you could do any other pre-process you need to do.
The other option is use a 3rd party Flash Projector and create a desktop application which gives you much more power in terms of saving files.