Here, things have got so bad that we've had to setup ISA too block all SWF files from being downloaded. This does the job nicely and at least enables a whitelist for legit sites.
However, the real problem we face at the moment is kids bringing in their SWF games on USB sticks and what not.
As fellow IT techs are aware of too, classroom discipline is rarely upheld and the kids believe they can get away with it.
With Flash also being on the syllabus, we can't prevent SAFlashPlayer from running. So right now we have a nightmare trying to stop the wave of gameplaying.
Windows Server 2008 might have a solution for us for the future, but what with the state of the country and budgets we're now getting, we're stuck on Server 2003, with no proper filtering (and in some cases working)!
But to think, if FileSystemWatcher had an OnAccess event, we'd all be laughing. Is anybody aware of an open source on-access scanner? My searching has come up trumps.