We currently have a home grown solution that allows us a great deal of flexibility in terms of how we groups questions and have unique grading criteria. It is however dependent on a DB which means it does not work without our server. I am tasked with researching other test development tools. I appreciate any comments you may have about the tools you are using.

We create our own using a custom Flash engine.
However, our customers often use products like Articulate QuizMaker, QuestionMark Perception (expensive?), and Adobe Captivate.

If we did not have our own engine, I'd probably use Captivate as it's fairly flexible and easy to use....and we already have it ;-)
CM