The answer to the question is that, yes, this method will work when using noScale and you can decide exactly how to handle the layout of your SWF when the stage size changes.
Here's the example from the previous post, refactored with some custom scaling code: You can view the example online and download the source code.
John Dowdell discusses the Top Anti-Flash Cliches, a topic I revisit regularly under the guise of "Flash Myths". Of course, accessibility makes the list (specifically, the perception that Flash lacks any sort of support for it.) How timely, then, to see Niqui Merret post a very simple example that demonstrates how to scale a Flash Movie in response to text size changes in the browser.
So, Microsoft, if you're wondering why people hate you, it's because of decisions like this. It's because it's blatantly obvious that your priorities are to squeeze every last dime you can from your locked-in customers as opposed to giving them a good user experience. If Yousif can create a no-hassle standalone installer for IE 7, so can Microsoft, if it wanted to act in good will. But apparently, it doesn't.
Alan Williamson attends EuroOSCON and is left asking Are conferences necessary? (via Nil Desperandum). Having presented quite a few sessions at quite a few conferences now, I feel I can engage some of the points he raises.