Loader, UILoader Alpha Problem

Hi,
I’m trying to load a swf inside another one using UILoader (or Loader for that matter).
all is fine except that the loaded swf does not respect bitmap or shape alpha, while it does on its own.
The loaded swf:
www.exhibitorhotel.com/movie.swf
the site:
www.exhibitorhotel.com
which loads:
www.exhibitorhotel.com/home.swf
Code:
Frame 1:

Security.allowDomain("www.exhibitorhotel.com");
shutter_mc_1.stop();
shutter_mc_2.stop();
stop();
var prevRE:uint;
var prevSE:uint;
prevRE = 2;
prevSE = 2;
theLoader.addEventListener(Event.COMPLETE,prevRfn, false, 1);
theLoader.addEventListener(Event.COMPLETE,checkload, false, 0);
var homeReq:URLRequest = new URLRequest("http://www.exhibitorhotel.com/movie.swf");
theLoader.alpha = 0;
theLoader.load(homeReq);
theBar.source = theLoader;
addChild(theLoader);
function prevRfn (evt1:Event):void {
    prevRE = 1;
    visual_mc.play();
    trace("COMPLETE");
}
function prevSfn (evt2:Event):void {
    prevSE = 1;
    digital_mc.play();
}
function checkload (evt:Event) {
    var prevRB:Boolean = ((prevRE == 1) && (prevSE == 1));
    if (prevRB == true) {
        prev1(prevRB);
    }
    trace(prevRB);
}
//Sound Ambient Intro
var prevS:Sound = new Sound();
prevS.addEventListener(Event.COMPLETE, prevSfn);
var prevR:URLRequest = new URLRequest ("http://www.exhibitorhotel.com/ambient.mp3");
var prevSC:SoundChannel = new SoundChannel;
var prevCon:SoundLoaderContext = new SoundLoaderContext(1.5, true);
var prevTrans:SoundTransform = new SoundTransform();
prevTrans.volume = 1;
prevS.load (prevR,prevCon);
prevSC = prevS.play(0,99,prevTrans);
//BG SOUND
var nextS:Sound = new Sound();
var nextR:URLRequest = new URLRequest ("http://www.exhibitorhotel.com/bg_audio.mp3");
var nextSC:SoundChannel = new SoundChannel;
var nextCon:SoundLoaderContext = new SoundLoaderContext(10, true);
var nextTrans:SoundTransform = new SoundTransform();
nextS.load (nextR,nextCon);
nextTrans.volume = 0;
function prev1(bool:Boolean) {
    trace("****ZZZZ");
    nextSC = nextS.play(0,99,nextTrans);
    var tr:uint;
    tr = 90;
    var prevT:Timer = new Timer(100,tr);
    var shutterT:Timer = new Timer(100,40);
    prevT.addEventListener("timer", outFade);
    shutterT.addEventListener("timerComplete", playShutter);
    prevT.start();
    shutterT.start();
    var f2T:Timer = new Timer(100,50);
    f2T.start();
    f2T.addEventListener("timerComplete", F2);
    function outFade (evt:TimerEvent):void {
    nextTrans.volume = ((prevT.currentCount)/(tr));
    prevTrans.volume = ((tr-(prevT.currentCount))/(tr));
    nextSC.soundTransform = nextTrans;
    prevSC.soundTransform = prevTrans;
    }
    function playShutter (evt:TimerEvent):void {
        shutter_mc_1.play();
        shutter_mc_2.play();
    }
    function F2 (evt:TimerEvent):void {
        gotoAndStop(2);
    }
}

Frame 2:

Security.allowDomain("www.exhibitorhotel.com");
theLoader.alpha = 100;
shutter_mc_f2a.stop();
shutter_mc_f2b.stop();
var sepT:Timer = new Timer(100,10);
sepT.addEventListener("timer", count);
sepT.addEventListener("timerComplete", shutterP);
sepT.start();
sep_mc.play();
function count (evt:TimerEvent):void{
    countT.text = String(sepT.currentCount);
}
function shutterP (evt:TimerEvent):void{
    shutter_mc_f2a.play();
    shutter_mc_f2b.play();
}

Does the loader or UIloader has a problem with Alpha? if it does how come the text glow effects are transparent?
Thank You.