There are indeed plenty of them and Flash is a great tool, but by itself, a Flash file is not playable. To be a playable video file, the video must be imported into Adobe for creation of the other supporting files necessary enable a playable Flash video. There are other programs that will produce Flash files like Camtasia if you begin with raw AVI footage.
For compressing raw content, there is Sorensen Squeeze, a great compressing tool but Vegas can get you good results if you begin by preparing the Vegas effort to match the format for which you are publishing the video.