This page shows how to mix HTML and Flash. There are several ways of doing this. You can put the Flash objects infront of the HTML or behind (like this). You can animate the HTML/DHTML object with JavaScript if you want (see this or animate the Flash object -- like you see here. I prefer animating the Flash object with Actionscript since it handles all of the fractional pixel stuff. If you animate via JavaScript you can't place objects on fractional pixels -- the motion just doesn't look as smooth. And the frame rate for DHTML is very low -- about 12 fps.
The secret to mixing Flash and HTML is in the <div>. Take a close look at this source to see how the division for the flash code is set up.

Note: If you have links in your HTML, be sure that the HTML layer is in front of the flash layer (higher z is closer to you eye.). download