Text Morph
 

Step 1: Open Flash and size the work area from Modify | Movie choosing 200 x 100 for this example. Choose any contrasting color for the background or insert a background image, then create another layer. Select frame 20 and hit the F5 key to lengthen the timeline.

Step 3: Select frame 20 and type in your second word. Select it on the stage, then use 'Ctrl + B' to break apart.

Step 4: Select frame 1 again and add a shape tween selecting Blend 'Angular' from the Frame properties box. Repeat for frame 20.

Test your movie. You can adjust the timeline for the effect you want.