This is just a quick tutorial on enabling transparency in your flash files. For example, in this site menu at the top the orange dropdown buttons are in a flash file with a transparent background, to allow for the shape of the page to show through. Without the flash buttons, the site looks like this:

With two simple steps we can add transparency to flash, opening the flood gates for a range of cool effects.
STEP 1
First off, once you have created your flash file, you need to alter the publish setting to allow transparency. To do this go to File > Publish Settings. This will open a window similar to this:

Select the HTML tab (indicated above), and set the ‘Window Mode’ to ‘Transparent Windowless’:

This is all we need to do in Flash to allow transparency. The rest is in the HTML object tags.
STEP 2
To display a flash object with a transparent background you need to add the following parameter within the object code in your html.
<param name="wmode" value="transparent">
This line just needs to be added under the other parameters, resulting in you final code looking similar to this:
<object classid="clsid:D27CDB6E-AE6D-11cf-96B8-444553540000"
height="142" width="100%" >
<param name="movie" value="/pageincs/header1.swf" />
<param name="wmode" value="transparent">
<!--[if !IE]> <–>
<object type=”application/x-shockwave-flash”
data=”/pageincs/header1.swf” height=”142″ width=”100%”>
<param name=”movie” value=”/pageincs/header1.swf” />
<param name=”wmode” value=”transparent”>
</object>
<!–> <![endif]–>
</object>
This will then overlay the flash, allowing the background to show through like so:

The Dude
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Very helpful thanks!!
So does fullscreen mode require that the parameter be used in both the outer and inner object tag, too?