Interesting library!
I just tried it, the sample on the home page needed some adjustments to work.
First, I had to pull all the import statements. There was a conflict with the default imports of Processing, so I moved the code to a .java file to avoid automatic imports. I had to add a pair of try/catch that were omitted for brevity.
At the end, I got a little Flash file showing a static text.

PDE file:

1. void setup()
2. {
3.   Sample sample = new Sample(this);
4.   sample.create();
5.   println("Done");
6. 
   
7.   exit();
8. }

Sample.java:

1. import com.flagstone.transform.*;
2. import com.flagstone.transform.datatype.*;
3. import com.flagstone.transform.font.*;
4. import com.flagstone.transform.util.font.*;
5. import com.flagstone.transform.text.*;
6. import com.flagstone.transform.util.text.*;
7.  
8. class Sample
9. {
10.   processing.core.PApplet pa;
11.  
12.   Sample(processing.core.PApplet app)
13.   {
14.     pa = app;
15.   }
16.  
17.   void create()
18.   {
19.     int uid = 1;
20.     int layer = 1;
21.  
22.     final String str = "The quick, brown fox jumped over the lazy dog.";
23.     final Color color = WebPalette.BLACK.color();
24.  
25.     final String fontName = "Arial";
26.     final int fontSize = 24;
27.     final int fontStyle = java.awt.Font.PLAIN;
28.  
29.     // Load the AWT font.
30.     final AWTDecoder fontDecoder = new AWTDecoder();
31.     try
32.     {
33.       fontDecoder.read(new java.awt.Font(fontName, fontStyle, fontSize));
34.     }
35.     catch (Exception e)
36.     {
37.       pa.println(e.getMessage());
38.       return;
39.     }
40.     final Font font = fontDecoder.getFonts().get(0);
41.  
42.     // Create a table of the characters displayed.
43.     final CharacterSet set = new CharacterSet();
44.     set.add(str);
45.  
46.     // Define the font containing only the characters displayed.
47.     DefineFont2 fontDef = font.defineFont(uid++, set.getCharacters());
48.  
49.     // Generate the text field used for the button text.
50.     final TextTable textGenerator = new TextTable(fontDef, fontSize * 20);
51.     DefineText2 text = textGenerator.defineText(uid++, str, color);
52.  
53.     // Set the screen size to match the text with padding so the
54.     // text does not touch the edge of the screen.
55.     int padding = 1000;
56.     int screenWidth = text.getBounds().getWidth() + padding;
57.     int screenHeight = text.getBounds().getHeight() + padding;
58.  
59.     // Position the text in the center of the screen.
60.     final int xpos = padding / 2;
61.     final int ypos = screenHeight / 2;
62.  
63.     MovieHeader header = new MovieHeader();
64.     header.setFrameRate(1.0f);
65.     header.setFrameSize(new Bounds(0, 0, screenWidth, screenHeight));
66.  
67.     // Add all the objects together to create the movie.
68.     Movie movie = new Movie();
69.     movie.add(header);
70.     movie.add(new Background(WebPalette.LIGHT_BLUE.color()));
71.     movie.add(fontDef);
72.     movie.add(text);
73.     movie.add(Place2.show(text.getIdentifier(), layer++, xpos, ypos));
74.     movie.add(ShowFrame.getInstance());
75.  
76.     try
77.     {
78.       movie.encodeToFile(pa.sketchFile("example.swf"));
79.     }
80.     catch (Exception e)
81.     {
82.       pa.println(e.getMessage());
83.       return;
84.     }
85.   }
86. }