Adobe - Developer Center : Selecting a Flash 8 video encoder
Flash video is the new JPEG! The release of Flash 8 signaled a milestone for Flash. With this version, Flash matured into a truly competitive platform for delivering web video. New benefits include quality/file size improvement and support for true 8-bit, alpha-channel transparency. The new Flash 8 video format makes it possible to deploy Flash video at about half the bit rate as Flash 7 video without losing any quality. You can also look at the equation from a different angle: With Flash 8, you can deliver video of much higher quality than Flash 7 without increasing the bit rate of your videos.
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