I was using the swftools module for a Drupal 6 site. It was nice as you could place tokens of audio or video files in your text editor and it would be converted to a flash object for you when the page was rendered.
A port for drupal 7 has just started and is realistically probably months away.
What are similar modules for drupal 7 that people recommend using right now?
Some modules that are atleast in development are:
Edit: I have been impressed with the jplayer website. Since drupal has jquery bundled, this might be a good fit. There is a module for D6 to wrap jplayer, but none for 7. I will try the library out out and let you know if it was easy to integrate or not.