Yeap Flash works great on CD rom. We've used in numerous times (mainly because projects have required elements to be available for inclusion on the web as well).
Potential problems that you may run into:
Watch for standardisation of frame rates. 24/25 fps is a good average, also works well for imported video and any synchronisation issues. Otherwise you will notice a big discrepancy when playing on machines of different quality…
Use exe not swf otherwise you need to ensure that the end user has got the correct plugin installed.
Targeting files not in the exe. Everyone has different set-ups and this can be a major headache when someone has to go on-line because you linked to audio file and they have set their system to make IE the default player :( . If possible import the files.
Fonts: If you are using non-standard fonts make sure you convert to graphics – you would be amazed at how many complaints you get from people re. having to install OR not being able to install to their system.
Working with videos. If you import them the bloat is unbelievable, we have also found problems when playing swf’s containing video footage on MX – the system seems to hang but we cannot find out why, suspect a software issue but the videos where produced by a 3rd party so it’s just a guess at this point.
Any videos exported from Mac OS and imported (presumably a software issue I don’t think it’s a platform issue but we haven’t had time to look into…), again we haven’t solved this one just gone for a work round. Best results are to decompile from DVD and then recompile and import into the swf. If it’s a very large file opt for a seperate swf
Provide a help file (print option is definitely recommended) if you are going to control the exe via the keypad. Otherwise you will be offering 24/7 phone/email support.
Old machines will just not play large files, mainly a memory issue, but obviously depends how old.
Exporting for Macs is a completely different issue you need to export to hqx file or export for QuickTime 4, however, the end user needs the correct plugin… It gets messy.
Can’t think of anything else but I’m sure there are %)