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You can import .gif and .jpg images into Flash. These are bitmap images and will most likely be a larger file size than the shapes drawn within Flash itself. This is because what you draw within Flash is a vector image and is basically a formula used by Flash to display the drawing. Vector images are smaller in size usually and can be enlarged without losing quality. Bitmap images however will get pixilated when enlarged. You can import a bitmap image and convert it to a Vector image by using the 'Trace Bitmap' option.

Today, Adobe gave a sneak peek into Flash Player 10 and showed off the new RTL, multi-column text engine, the new 3D features, and the new bitmap effect scri...

Really good tutorial, something like photoshop effects but using it on flash.