Okay so lets say im making a flash movie. How do you add text boxes so people know whats going on.

Theres a textbox tool on the tools panel, you can then either manually add text to it straight away or change it to a dynamic textbox where you can change the text using code, or an input box which lets user write their own text into the box.

There is also a way you can add textboxes using code as well, would this be better?

When you mean by code you mean like having the viewer press a button and the text will move along. That's also what i want to do.