I've been trying to work out a way of doing this for a while now, and the only solution to date seemed to be using Intelliprog's HTMLViewer control. Sure, these guys need to make money, but that's some rather aggressive licensing for a simple wrapper!
Imagine if I wanted to make a small Shareware app, and I wanted to host some HTML (with Flash in it of course!) in there... If I plan to sell 100 copies (and assuming I understand the pricing info at the bottom) I'm up for $US 149.99. If I was only charging $US 3 for my app then half that money is going just to the licence of a simple little wrapper.
I was ready to give up, when I spotted something sweet and wonderful on the GotDotNet Samples feed (subscribed!). This HTMLViewer sample does everything I need, although there were a few errors in the code provided I posted comments on how to fix it. Being that it's a sample, it's got a great price tag - FREE!
I did a quick test of loading HTML with Flash in it and it worked like a charm!
Now I just wonder if there's a way to get/send commands to the Flash object in the hosted HTMLViewer?
Ahh, the world is a nice place again.