Understanding image distortion in a swf

http://b.bngi-channel.jp/psp-haruhi/swf/haruhi_swf_sample/haruhi512/haruhi512.swf

Hi I’m trying to understand how this was done. My best guess is it was drawn and a kind of wireframe was created in flash with the image attached to it like a texture while the wireframe morphs distorting the image slightly…

I’m not sure if this is how its being done so anyone elses comment would be appreciated especially on tutorials on how to do this sort of thing in flash if you know of any.

Reminds me of sitepal a bit. Do they use the same/similar technique?