How do you create your flash characters?

I'm new to flash, learning different things step-by-step. But I want to know how do you create your own characters? Do you hand draw them, create them with photoshop/gimp, create them in flash, ect? Just curious is all. I would like to find the best way(s) to make my characters.
Oh, and another thing, do I have to draw out or create the different parts of the character separately & put them all together in flash to create an animation with the character? Or can I draw the whole character as one whole & segment different parts of the body off in flash to animate?
Thanks in advance!
Oh, and another thing, do I have to draw out or create the different parts of the character separately & put them all together in flash to create an animation with the character? Or can I draw the whole character as one whole & segment different parts of the body off in flash to animate?
Thanks in advance!