So I made my hands dirty trying out what Flash and Google maps have to offer together.
In the example you can add my tiny photo wherever you click on map. It however doesn't do it when you drag. Going further this is going to shape of very nice application. It's at the back of my head. Waiting for enough time to complete it. Till then enjoy this.
A little note from Google Maps help too
You have to include API key in object and embed tags as flashVars to publish swf having google maps online.
Note that we add the API key parameter within a
flashVarsparameter. This registration method is an alternative to compiling your key into the SWF file within the MXML declaration. If values are specified here, they override values contained within the SWF file or MXML declaration. Also note that the API key must match the domain where the SWF file is hosted, not the domain where the HTML file may be hosted