menu_count
This variable tells flash how many menu items there are. This number could be determined dynamicly by Flash, but it's a heck of a lot easier and more reliable to just type the number in yourself when you're done assembling the menu.

menu_text_<x> (where "x" is the menu entry number)
This variable is what the text of the link will be. In this example, the names are Home, Stories, Drawings, and Contact Me. I have ignored entry 4, since it's text will not appear and is unimportant.

menu_link_<x>
This variable is used to make the buttons active. It can be whatever you want, from URLs to frame numbers. In this case, the example movie will assume that these are frame numbers, but you can change the linking script in the movie to handle whatever you please.

menu_state_<x>
This allows for each item in the menu to take on one of multiple states. In this example, entry 4 has been set to state 2, which translates into a divider line in the Flash movie. You could define many states in the flash movie to handle as many situations as you need.

menu_loaded
This variable is always equal to one, and simply lets Flash know that all the variables have been loaded, and that it can proceed with building the menu.