Yes lots of people do. There's a few sites like auctiva.com that have automated tools for ebay auctions. Here's an example: http://search.ebay.com/320204711817 - the scrolling gallery thing at the top of the description. I personally have never used Flash on my auctions, I think it looks cheap and nasty - I guess it depends on what you're selling though.
Yeah I guess it could look cheap and nasty. But I make my own flash stuff so I could blend it in nicely. May give it a go later on.
I'm pretty sure you can drop your own swfs into auctions. I guess if people are using third party swfs, then there's nothing to stop you using your own. Just make sure it doesn't screw with the 'refresh' factor, for when your auctions are nearing their end time and everyone is refreshing like crazy
i tried to do this once and could never get it to work, but that may just be my limited coding knowledge