Microsoft has really put an effort into the newest version of Silverlight (v4), making it into a fully usable platform for RIA development. I suspect the release of Windows7 has freed up some more resources for the Silverlight team. Microsoft has addressed much of the critique of the previous versions of Silverlight. A lot of new controls, support for data-binding, MP4-video and a lot of development-tools makes Silverlight 4 a platform worth checking out for your next RIA-project. I have scratced a bit on the surface of this upcoming release, and here are some of the reasons why I am looking forward to start with Silverlight 4.
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The Flash Player has supported the wmode parameter since version 3. The default value for 
Easily format your code in Flex Builder
Get the plugin from SourceForge or read Grant Skinner’s installation guide to install it from within Flex Builder.