Ever year at MAX I discover a new Flash audio application. When I rejoined Adobe in 2007 it was the audio editor/remix tool called Digimix that was one of the winners of the first Air Demo Derby. Alan Queen, the developer behind Digimix, joined Aviary last year and re-wrote the application (now called Myna) taking advantage of the latest audio APIs in Flash Player 10.
http://aviary.com/tools/myna#
Last year at MAX 2008 Andre Michelle presented his Flash audio toolbox called Hobnox. It allows you to patch together various synths, drums pads, effects pedals, etc. to create your own electronic music. The user experience is very cool and the simulated pedals and synths sound great.
http://www.hobnox.com/index.1056.en.html
This year I saw a really nice piano teaching tool called PianoMarvel which was one of this MAX Award finalists. It's a great way to use the power of Flash to help kids learn to play the piano.
http://www.pianomarvel.com/
And of course there are many others Flash audio apps out there. Here are a couple of others I've run across including...
Noteflight - Music notation tool
RemixGalaxy (formerly know as SpliceMusic) - remix tool for DJs and musicians
There are also a number of audio players on the web taking advantage of Flash including the BBC iPlayer and iHeartRadio from Clear Channel.
As the Flash platform continues to evolve I'm looking forward to discovering the next cool on-line audio experience.
-Lawson

