There is no flash tool in HTML 2008! I have it in my 2007 version between the "Insert List" and "Style Sheet Wizard" in the code editor. Yes, I've looked under the Insert tab and Customize Toolbars.

I always just paste the html

http://www.coffeecup.com/html-editor/2008/
lists these changes to the 2008 editor as far as flash is concerned:

REMOVED: Flash Text Wizard from Application and Install.
REMOVED: Website Font menu item.
REMOVED: Website Font files from installer.
REMOVED: Flash Animations Menu and Sub Items removed from insert Menu and code Editor Toolbar. Flash Wizard Exe removed from setup also.