Yes, I've used a flash banner in the banner module and it worked fine apart from the IE Activation box which i think the core should do something about removing at some stage. In any case, the banner is expired now, but I'll have a look at the vendor and see if I had to do anything in particular to make it work.. it was a few months ago.

I do recall that there is one problem.. and in fact perhaps this is what you're getting at?:
The banner can't be given a URL like one does with image banners. It didn't matter too much to me with this banner because I had a hard-coded link in the swf, but it is definitely not ideal. I think the core needs to look into this as well and I might post it when I get back after my break.

I had to set the URL to "File" and then not specify a file.

Rob