That's flash 11, pretty new development in the area of 3D flash; it lets the programmer utilise the GPU rather than just the CPU so you get all sorts of fancy effects like normal maps, dynamic lights, 3D models that don't use ints for their vert positions (MD2 wobble time), and shader effects.
Currently working on a flash 11 game with a friend, when it's gotten to a decent enough level of quality I will probably post up some tech demos of it on here.
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