There is a lot going on around Flash and SEO, though much of it is behind the scenes.
and specific to Google and Yahoo, read this:
I have a small site with basic HTML (http://www.waterproofcameracase.co.uk) and I want to add a flash animation to the top only (i.e. not make the whole page flash). Does anyone know if this has a negative effect on SEO?
Thanks for that. I found the /devnet/seo site shortly before your reply. Deep linking with swfAddress looks very interesting - I'm trying to work out whether the URLs it generates can form part of a valid sitemap. Having researched the topic more thoroughly I find things look a lot more positive than my rather cynical question implied.