Google can read the text in .swf files, and can also extract complete URLs from them. But the nature of the way Flash files are embedded within a parent HTML file has several consequences: (a) the parent document does not get credit for the text content of the embedded Flash file, (b) since the Flash file has no semantic mark-up capabilities like HTML files and little or no PageRank, they rarely appear in the rankings for any search, (c) even if a Flash file did appear for a search, the user might find navigation difficult or impossible. In two of these aspects, Flash files are just like <frame>s or <iframe>s in that in order to appear in the search results, the parent document must contain relevant content. And since among the three major search engines, only Google can read Flash files, it's a good idea to avoid putting all of a site's content into them. There's a good article in the Google Webmaster Blog on this topic titled "Best Uses Of Flash". Good luck!
