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I was reading some articles about Flash SEO (like this) and some of them recommended using SWFObject to make some text visible to search engines. The trick is that you put text in HTML format inside <div> layer and then you put your flash over it (SWFObjects javascript code changes innerHTML of the <div> layer). While this works and I am still using this technique at sites like djnet, the technique is also kind of cloaking - showing one text to search engine, other for the user. Spammers can implement this method in their sites and sooner or later Google will create algo that will ban these sites. And the good ones too.
While this problem persists, you can put TITLE and DESCRIPTION in your flash files - in Flash IDE choose Modify > Document (or Ctrl+J). This is the part that gets indexed by search engines. Though this is better than nothing, again using SWFObject hides the flash file from search engine, thus making this piece of metadata useless.
I`m still thinking of rebuilding my best project (djnet) in php, just for SEO purposes. But what I know fur sure is that search engines will try to give better support for Flash because it won`t go away in the nearest decade - Internet cannot live without Flash video (though internet should get rid of flash advertisments).