Does the following mean that dynamic TextFields will NOT be indexed?
We currently do not attach content from external resources that are loaded by your Flash files. If your Flash file loads an HTML file, an XML file, another SWF file, etc., Google will separately index that resource, but it will not yet be considered to be part of the content in your Flash file.
Does the following mean that ONLY static TextFields will be indexed?
At this time, content loaded dynamically from resource files is not indexed. We’ve noted this feature request from several webmasters, look for this in a near future update.
From Improved Flash indexing, Google Blog
Condensing the entire 45 minute video The Searchable SWF by Jim Corbett.
All text in TextFields that follow all these rules will be Indexed by the Virtual User (Google)