I am not 100% sure if this is new or not, but it looks like a recent blog posting at the Inside AdWords blog under the title Advertising outside of the (text) box says it is new.
Whatever you decide, and we do suggest that you test and track your results, you can take advantage of both static and animated image ads. We accept image ads (.JPEG, .PNG, .GIF), as well as Flash (.SWF), which is a new addition.
So now you can upload those annoying Flash banners to AdWords.
Forum discussion at Cre8asite Forums.