bump

Here is an example. Create a new Application, paste this code in and then hit the button. As you can see it resizes the image but the text does not reflow. Been working on this all week.

<?xml version="1.0" encoding="utf-8"?>
<mx:Application xmlns:mx="http://www.adobe.com/2006/mxml"
        layout="absolute"
        backgroundColor="#cccccc">

    <mx:Script>
        <![CDATA[
            import mx.core.UITextField;
            protected function button1_clickHandler(event:MouseEvent):void {
                var text1:UITextField = UITextField(text1.getChildAt(0));
                var loader:Loader = text1.getImageReference("loader1") as Loader;
                loader.width = 200;
            }
        ]]>
    </mx:Script>

    <mx:HDividedBox x="24" y="54" width="100%">
        <mx:Text id="text1" width="457" >
            <mx:htmlText>
                <![CDATA[some text before swf
<img src="http://www.google.com/intl/en_ALL/images/logo.gif" id="loader1"/>
some text after swf some text after swf some text after swf some text after swf some text after swf some text after swf some text after swf some text after swf some text after swf some text after swf<br/>
some text after swf<br/>
some text after swf<br/>
some text after swf<br/>
some text after swf<br/>>]]>
            </mx:htmlText>
        </mx:Text>
        <mx:Text id="text2" width="100%" >
            <mx:htmlText>
<![CDATA[another column of text]]>
            </mx:htmlText>
        </mx:Text>
    </mx:HDividedBox>
    <mx:Button x="24" y="24" label="Button" click="button1_clickHandler(event)"/>
</mx:Application>