Wallop is one of my favorite companies because they took Flash and ran with it (I covered it here). They took a brand new approach to social networking and incorporated Rich Internet Application methodologies in a big way. Wallop did some things very well. I like the way social networks are displayed, I like the media integration. But there have also been complaints about how slow the application is (my large network makes Wallop very slow), and there are some small usability issues that I think frustrated some users.
But Wallop seems to be making moves. I got word that they are no longer with their PR firm, Porter Novelli (which sucks becuase I liked their rep at PN). Om Malik covered some of the struggles with management which seemed to imply that things at Wallop were less than peachy. But last night I saw that they're looking for a Flex developer. That could mean they're converting over to Flash Player 9 which would give them a huge performance boost and might help with the overall application development.
It's good to see signs of growth out of the company. I'm looking forward to see how this investment in Flex translates into the product. I think Wallop has a lot of potential so this is a step foward.