My last 2 sites I incorporated flash banners and I submitted to a lot of Link Lists. Only one LL rejected me because of "unlinked images" -- which to me implies he couldn't view the flash. The rest accepted the flash and moved on.
My concern was more that flash hides the mouseover status, but I think if you make it clear in the text in the flash ad where the user will be going then it's ok.
Example of my flash banner that was basically universally accepted:
http://www.depravedasians.com/smokin...ica-thorn.html