Even tho its kinda cliche…
source and faq:
http://www.arno-box.net/flash/14/flash- … tunes-v02/
demo :
http://www.arno-box.net/demo/
It’s done using the Sandy distortImage class, it’s in AS3, developed using Flex2/AS3.
And it’s in french 
If you want to do it in as2:
http://www.n99creations.com/vieweg.php?id=5
Hope that helps.
