Drag and attach to object

I am trying to create some scripting to make an object (bandage) to be draggable, then be able to pickup/stick/attach to another object (an egg)

http://wcedu.pima.edu/~jekloff/Project5.swf is my swf file. If you look at it, I basically want it to perform the same thing as the embedded movie I put in the swf. I assume there has to be some collision detection, but I dont know where to start. All I have is a draggable bandaid.

Any help appreciated.