They are completely different products, Flash is greared towards animation, not photomanipulation, or just about any other art. Photoshop is the opposite, its not for animation, but instead for just about any digital art, from photomanipulations to matte paintings.
So yeah, it really depends on what you want to do. If it involves animation used Flash, if not, use Photoshop. If both, then just use them both - its fairly easy to import PS files into Flash.
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