Hi Mike,
Definitely possible. You can look at an example here:
http://www.survivetheoutbreak.com/
Or, if you're willing to incorporate existing technology (Youtube :)):
Another thread about this topic:
http://forums.creativecow.net/thread/190/869090#869090
Kind regards,
Pieter
General notice: from now on, I would like to ask everyone to put [AS2] or [AS3] (corresponding to the version of actionscript you are using on your project) in front of their post titles when the question is actionscript related! Please help us help you faster. Thank you. 
