I wonder if anyone ever succeeded in using SWFObject with Xoops?

Seems like it will not work, the swfobject javascript doesn't get executed at all.

I did for my website actually. I forgot the details of how I did precisely, but I kept everything basically.
First I read this page.

I got a script (installation script from postnuke) which converted my old database to postnuke and then converted that to XOOPS using the XOOPS 1 installer itself or some other script - YMMV. There might have been some other modifications that I had to do manually to the database. Now I have migrated to XOOPS 2 successfully.

The error in that file is mentioned and patched in this bugfix:

http://sourceforge.net/tracker/index.php?func=detail&aid=1052403&group_id=41586&atid=430842

I had the same error because XOOPS 2 refused to create 2 templates for 2 blocks and I had to update the file (which gave me the same error in debug mode) before it would generate them.

Hope this helps.