No, not resizing anything. Let me show you an example.
This was a small job i did just the other day.
All the images:
Index of /buick
The final flash app:
buick
(press Space if you want to see the flame car easter egg)
The jpeg images in that URL above were all exported from photoshop at 80% quality.
Embedded into the flash file and then published.
jpeg setting in flash is 80% also, but that's not relevant because even if i set it to 100%, it's still re-compressing the already compressed jpegs into 100% quality ones. They retain the same quality as the photoshop exports at double the file size.
Flash jpeg @ 80% is shocking compared to Photoshop jpeg @ 80%, have you never noticed that?
I even tried importing the PSD directly into Flash to avoid 1 of the compressions at least, but the difference was negligible. The images had all the same artefacts as before and the file size decreased by 2kb.