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     HTML pros & cons:

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search engine friendly

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no special plug-in is needed to be installed by viewers

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easier navigation

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good for low-bandwidth site visitors

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limited interaction possibilities

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what visitors see is not always exactly the same as what designer had designed.

     Flash pros & cons:

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not search engine friendly

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special plug-in is needed to be installed by viewers before seeing anything.
(However earlier versions of Flash player plug-in are installed on 95% of personal computers.)

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a fully interactive environment can be designed for navigation
However the more interactive it is, the more game-like it becomes and this can become annoying after a while. (users get tired of this kind of navigation if they use the site a lot.)

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not recommended for low-bandwidth site visitors

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great interaction possibilities

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what visitors see is exactly the same as what designer had designed.

 

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