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Newgrounds has a 10M file size because, frankly, no one wants to download Flash files that are larger than that. Smaller submissions are accessible to a wider audience and more likely to be featured on our front page.
Most submissions can be drastically reduced in file size with proper audio optimization. Please follow the guidelines on this page before submitting your finished Flash.
You can import your audio in any format, although if you intend to loop it, we recommend .WAV format. Loops that are imported as .MP3s don't loop properly, and no one likes a crappy loop. We recommend Quicktime for converting .MP3 to .WAV, though there are any number of applications available.
We do recommend exporting your audio in .MP3 format when you export your Flash. As long as the loop is imported as a WAV initially, everything works fine and nobody gets hurt.
We highly discourage using an entire song unless you are specifically making a music video. If your game or movie isn't 100 percent dependent on the music, find a good loop that does the trick. A 20 second loop can offer a lot of audio variety and save a lot of bandwidth. The worst is when an artist imports a song that is longer than his or her movie. Their exported Flash file includes a three minute song and we only hear the first minute. Flash doesn't crop the audio unless you have it set to stream.
We highly discourage using commercial music; try to look around for audio that's royalty-free. We have our own archive of free music in the growing NG Audio Portal.
We love Radiohead videos as much as the next guy, but in general it is a waste of your time to make a video for an artist who is signed to a major label. The band may appreciate it, but their representatives usually won't understand the magic that is going on here at Newgrounds. Direct your creative energies elsewhere, otherwise you're just giving free advertising to an industry that may not appreciate you.