Follow cursor problem looking for an answer

I’m halfway to where I need to be but am clearly missing a piece.

Ultimately I need have a cursor that flips horizontally (or preferably one where I can change the image to an alternate) while moving in a rightward or leftward direction. The arrow goes to the right when moving right, left when moving left not up, down or any other angle.

So far so good but the y-axis is now dead.

I have a basic concept test setup at http://tinyurl.com/luvf3h

and here is the basic borrowed cursor code.

Any ideas on being able to move the cursor along the y-axis while keeping the arrow pointing left or right?

cursor_mc.onEnterFrame = function() {
var xMouse = _xmouse;
if (Math.abs(xMouse-this._x)<1) {
this._x = xMouse;
} else {
this._x -= (this._x-xMouse)/6;
}
var nX = xMouse-pX;
if (nX>0) {
this._xscale = 100;
} else if (nX<0) {
this._xscale = -100;
}
pX = xMouse;
};