UPDATE, 24 Mar 2007
I wrote a fix for the swfir flicker bug. Hope that helps.
Latest catch from del.icio.us/popular – swf Image Replacement.
From the site:
swfIR (swf Image Replacement) is here to solve some of the design limitations of the standard HTML image and its widely-accepted associated CSS values, while still supporting standards-based design concepts. Using the dark arts of JavaScript and Flash, swfIR gives you the ability to apply an assortment of visual effects to any or all images on your website. Through progressive enhancement, it looks through your page and can easily add some new flavor to standard image styling.
To put it simple, it allows you to create image with rounded corners, rotate it, make it scale with text and drop shadow – all on the flight.
Only one thing I didn’t like – script gives nasty flicker effect when it replaces images with flash, making image disappear for a moment (FF2.0)