Interactive Character Animation in Flash MX

Ok…this may be to advanced (not for you, for me) but I’m interested none the less.

Anyone got any insight into how this excellent piece has been animated. I understand the theory behind the hitting part, it’s more the actual reaction animation of the character I am interested in.
http://www.neostream.biz/shop/images/product/Source02/preview.htm

Also, iIs it possible to create a hierachical linking of graphic clips/objects to create something similar to character animation? I hope this makes sense. I.e. if one object is moved another follows according to it’s registration/pivot point.