'Flash Galleries' deals with the configuration of how the flash gallery looks, not with the content of the gallery itself.

I think there are two possibilities:
[*] Move it to /admin/settings/
[*] Move it to /admin/settings/image/ as MENU_LOCAL_TASK

I think the latter is the way to go, since the configuration of the Image gallery module (which is just another gallery, like flash gallery) can be found there.

Also instead of 'Flash Galleries', it should read 'Flash galleries', as every module/ option seems to use this convention.