I wanted to make some type of fog quite a while ago and came up with this. I changed it to AS2 and optimized the code a bit for faster generation of clouds.
It works by taking a bunch (90) of radial gradient white to transparent circles and stacks them ontop one of eachother. Not exactly the most efficent way of doing things but it looks great. The positioning had to be the hardest aspect of this little effect. It took a good 5hrs of tinkering to get it to look right.
Without further adue here is the FLA and .AS file.