Just use this guide. Its an easy guide that shows you how you can download youtube videos in other formats than flv http://youtube.com/watch?v=aM3lfiOEjvM
You can convert FLV file to SWF(Flash Animation) and you can add what you want as a picture to SWF.. Sincerely
I'd like to recommend Flash Video MX Pro to you, I always use it to convert video to flv and make funny video for uploading to my homepage, it's easy to use and the quality is awesome, you can convert video to Flash (SWF) and Flash video (FLV) and watermarking video with it easily. that's pretty cool. It worth a try Hope it helps. Contact me if you have any other question
A flv file doesn't have any functionality built into it to create clickable areas. You'd have to create something clickable in the .swf file that plays the .flv file.