Why not do this job as a simple DVD? DVD offers excellent quality, great cross-platform compatibility and easily allow for the level of interactivity you want. Cheap and dcecent tools include Sonic’s ReelDVD, Sony’s DVD Architect, and on the Mac DVDStudioPro is good. And there’s always Encore.
If you have to use Flash again after a long layoff, it will take you a little time to get back up to speed. And you’ll maybe need to think about the many users who don’t yet have Flash 8 installed, and how to help them to update … a lot of hassle for you if you just want to play them video with a couple of menus.
The big plus of Flash compression is for web delivery – great quality for the bandwidth. But DVD quality is still good – a well-encoded mpeg2 file for DVD at a decent data rate is going to look better than most highly-compressed files in whatever format.
Of course if you want web delivery and the ability to populate a menu with updatable choices , all at decent (for the web) quality, then Flash is a great answer.
If you do want to go the Flash way, this thread from the Flash forum may be of use to you. https://forums.creativecow.net/cgi-bin/new_read_post.cgi?forumid=190&postid=857614&pview=t#head