Button problem in transparent movie

I am working on a flash menu that uses invisible buttons and am having trouble as soon as I make the movie transparent in the html.

Here are the two pages:

w/ transparent bg:
http://www.amychance.com/index_w_trans_flash.html

w/o transparent bg:
http://www.amychance.com/index_w_flash.html

As you can see, the buttons on the menu at the bottom of the page work properly in the latter page, but in the former, they go all wacky. Again, the only thing different between the two pages is the transparent property given to the swf file through html. Has anyone experienced this strange behavior before? If so is there a fix?