> A good XHTML 1.1 valid way for embeding flash/java/etc object is bu 
> using a template sort of like this. (This is a minimal way)

This whole thread is off topic.  ("how to" and "browser specifics").
 
> That will work on IE, Netscape and Mozilla. Use the data attribute not code.

There is no code attribute, and that was true of HTML 4.01 as well
(the question was based on the false premise that code had been removed;
it only ever existed for applet elements).  It seems fairly clear to me
from the narrative and some explicit examples that the specification
intended that classid should be used.  However the whole implementation
of object is a mess, but this is not the place to discuss it.  Moreover,
HTML has nothing to say about the semantics of particular param elements,
making solutions based on param even more off topic.

Also IE doesn't support XHMTL 1.1.  See the many discussions about the 
application/xml+xhtml media type, which is required for everything except
HTML and, as second best, for XHTML 1.0.