placeholderMC -layers showing underneath

Using Flash 8;
Using Timeline based animation, not actionscript;

Sorry, this is probably an easy question. I have an intro page (named Hashem.fla) which uses a placeHolderMC as a container to load external .swf’s into (named HashemHome.fla, please compile into .swf, could not attach .swf here).

The problem comes with 2 different menus I want to use. 1 menu only for the intro page, then the other menu for the rest of the site.

I want to change from menu1 to menu2 upon clicking the navigation buttons, so i tried using “on (release)” and onEnterFrame to adjust the _alpha of menu1 (=0) and menu2 = 100.

However, I cannot get menu1 to properly have the _alpha =0 or visibility=0 and have menu2 _alpha -100;

When I click the “Home” button to load the external .swf into the placeHolderMC, the underlying layers, IE: menu1 still show up, like my loaded external swf is transparent.

Since I am using the timeline, is this a matter of placement of the objects in the timeline? I tried using a blankMC, as a “divider” between sections, thinking menu1 would not show up, but it still does. Would actions better handle this?

Any ideas? I have attached both .fla’s.

Thanks, Dave.