Nested mc Events

I know this is a subject that’s been beat to death, but I’m still looking for a better solution than what I’ve got.

Here’s the situation:

on the stage is a movieclip with an instance name of “GraySquare”

within that movie clip is another moiveclip with an instance name of “BlueSquare”

On a blank frame on the stage I’ve got the following action script

this.GraySquare.onRollOver = function() {
	trace ("Gray!!!");
}

this.GraySquare.BlueSquare.onRollOver = function() {
	trace ("BLUE!!!");
}

The GraySquare.onRollOver fires, but the GraySquare.Blue.Square.onRollOver does not, due to the fact of the “nested events problem” where the GraySquare’s events supercede the BlueSquare’s events.

as a work around I can do this:

this.GraySquare.BlueSquare.onEnterFrame = function() {
	if (this.hitTest(_root._xmouse, _root._ymouse, true)){
			trace("Blue RollOver");
	}
}

which is constantly checking for hit detection but it’s VERY processor intensive. Plus without putting some kind of variable stoppage in there, the trace(“Blue RollOver”); fires off over and over and over.

Anyone have any thoughts on this? I had really hoped that Flash 8 was going to have a solution to this but as far as I can tell it does not.

I’m going to attach the FLA here - it’s Flash MX 2004, but I’ve got Flash 8 and I’ll take a Flash 8 solution if you’ve got one.

Thanks

BTW, I just reciently found this message board and it’s quite teh awesome.