If you have a Div/Layer overlapping a Flash object layer, the Flash object layer would take precedence and be visible. The Div/Layer which you placed above it by specifying a higher z-index value would not have helped it from being hidden by the Flash object. At least not with IE browser.
This can be frustrating especially if you have constructed a drop down menu that extends over to a flash movie. To rectify this problem, you need to add wmode tag to the Flash movie codes as such:
1) <param name=”wmode” value=”opaque” />
2) <embed> … wmode=”opaque” … </embed>
This works fine for most recent browsers.

One Comment
Thanks! You saved me. I’ve searched and went over dozens of sites that gave solutions that did not work. Your way is simple and works perfectly. Thanks again for posting this.
-Greg
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