That's what I said....create an HTML site and embed a small Flash piece where you want to add a little pizazz. It would typically be located where a static .jpg or .gif would be. I do it with great success for my clients that insist on some type of Flash element. I also do it for pure Flash sites that I convert when doing SEO work. I don't do it on my own sites simply because I don't use Flash on them.
All those who say seo in flash isn't possible are wrong. Eventhough Google isn't as good at it as the other SEs. Try this link: http://www.webpronews.com/ebusiness/seo/wpn-4-20040907GoogleCanNowIndexFlashAnInterviewwithMichaelMarshall.html Macromedia even has a sdk for it. Pop something like this into your google toolbar: "dogs" filetype:swf and watch all the high ranking flash files on dogs come up. Also, since MX, MX2004, and Flash 8 really takes advantage of outside text, php, asp, etc. files these files tend to get indexed as well.
I do tend to agree that using elements of flash in a html, php, asp, etc. page is the better way to go.
The technique that has worked for me is to include some descriptive text between the Flash <object> and </object> tags. Flash ignores it but search engines can see it -- and it doesn't appear on the page (except when using Firefox as the browser). I've also added some small amount of descriptive text at the bottom of the page, below the Flash movie.
I am a strange person because I see both sides of the story. Some subjects and websites need a little "Flash" to gain entry to to peer to peer world that is the subject. So using Flash judiciously may be a worthwhile skill to develop?