odoe and bjorn,
Thanks for the quick replies and I'll check out the FlashDevelop IDE. Odoe, you stated that you don't think the CS3 would work. Would you care to elaborate? I checked out that it is compatible with ActionScript3 but not sure if it's compatible with Flex API Version 1.x or 2.x.
Bjorn, would you suggest the Adobe products which I might be able to convince my organization to buy or is the FlashDevelop IDE adequate enough to build Flex API apps on ArcGIS Server 9.3.1?