If you have the multimedia filter enabled, any file who's name ends in swf should show up embedded. If you don't, go to filters in admin and turn it on.
Martin has this set to a default size of 320x240, you can change this by going into filter.php in your mediaplugin directory (backup filter.php first).
I posted a hack over in the filters forum that lets you set different sizes in your filter.php.
To work with Director shockwave files (.dcr) you would have to add a new file type to the set in filter.php, and put the proper code in all those '$replace=' variables.
General help
Embed shockware in course
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