"Painting" with an object -- my results so far

So I wanted to create a simple whiteboard that allows someone to use a brush to paint whatever. I did some research, pieced together some things, and came up with this:

My “brush” movieclip… just a circle:


onClipEvent (load) {
    this._x = _root._xmouse
    this._y = _root._ymouse
}

My pointer MC… a dot that follows the mouse:


onClipEvent (load) 
{
 startDrag(this, true);
 Mouse.hide();
 this.swapDepths(9999);
 down = 0;
}

onClipEvent (mouseDown) {
    circle.loadMovie("Ghost___Abstract_Brushes_13_2.png");
    down = 1;
}

onClipEvent (mouseMove) {
    if (down == 1) {
       i = i + 1;
       duplicateMovieClip (_root.circle, "circle" + i, i);
    }
}

onClipEvent (mouseUp) {
    down = 0;
}

Two questions:

  1. This works fine if I publish with Flash5 settings… however not v8 or 9. How can I fix that?

  2. The second part of this is to be able to load an external image as the “brush” instead of the circle symbol in the MC… How should I go about that (once the actionscript is fixed for v8+)?

Thanks!