I dealt with this issue on my blog pretty extensively..

http://thesaj.wordpress.com/2008/02/12/the-nightmare-that-is-_blank-part-ii-help/

Here is an example of what I implemented for the browsers I was
testing for (IE, Firefox, Safari, Opera on PC/Mac)
http://www.easternstorm.net/sassie/example2/example2-swfobject2.html

Note - in my personal usage, I broke up the example into two classes.
One for browser detection and one for _blank issues.

Note, there are a few caveats:
> allowScriptAccess needs to be set to "always"
> wmode needs to be set to either "transparent" or "opaque"

- Jason


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