Flash ad filtering is working fine here.
Note that for many (if not most) flash ads the code for the swf is being written out by javascript. Often there is no ".swf" in the code to filter. Crafty agencies!
You may need to create a filter to block an external javascript file from loading. On many sites I need to do this.
You can also probably block several entire domains like:
ad\.admarketplace\.net.* or
a1\.interclick\.com/.* or
gfx\.klipmart\.com/.*
just to pick 3 at random. You can find exhaustive lists at sites like
http://pgl.yoyo.org/adservers/
You may also be able to detect in the html that the flash ad is in a named DIV tag, then you can whack it with a custom css file, as in
div#damnAd { display:none !important }
I need to do this for practically ALL the sites I visit. Ad blocking via URL is not enough in these cases. Amazing what I go through just not to view web ads!
Of course, it would be nice to be able to right-click on a Flash ad and block it there, like you can with SafariBlock, or in FF with AdBlock. Maybe in 6.0?