
The first part of my research project into how Google and Yahoo use Ichabod to index flash is complete. OK. Before you get all excited about what you see above, let me give you the caveat that results may vary slightly on your browser, however they should generally be the same. The Google search for duanes world was done on a machine in Vancouver, Canada (Google provides some regional variances for search results). For the search "Duanes world", the site http://tv.adobe.com beat out http://technoracle.blogspot.com. The latter has a huge text "Duane's World" across the top while the former is built completely in flash. Even more spectacular is the fact that the Duane's World episodes are in fact dynamically loaded at runtime by the flash page template.
There are factors that influence this so it is not a pure experiment. External links to these pages and user click patterns obviously are factors in this elevation. What is important is to see the patterns of Google and Yahoo actually picking up text from Flash.
UPDATE: Ignore the following section on Pixton. I made a really dumb mistake and Google was in fact indexing the alt text to a jpg rather than actually reading SWF content.
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Another experiment shows that this is in fact happening now. Look down the search page a bit further and you will see a link to a flash comic strip at Pixton.com as shown below:

Read the synopsis words very carefully, then go to the link and you will note that Google has in fact read static text from the flash comic strip at Pixton.com.
http://pixton.com/comic/jofxlbkq
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For Flash Search Engine Optimization, there are other studies I am doing which will be released live at the MAX 2008 show in Milan Italy.