I had written about this fact on TechQuack Can Search Engines understand flash atleast Google does
Jeff Muendel at news.com has written a nice detailed post about how Search engines like Google read text in Flash sites.
Stephan Spencer had interviewed Top Googler Matt Cutts and its now public that Google is using Adobe’s flash SDK
Now the problem is that Google can understand text and index it. How will they provide matching results?
What’s the context between a zillion flash movies with text?
So better put a lot of relevant text in your Flash movies.