Preloader interfering with Button functionality

I am having a problem when I add a preloader to a swf that loads on top of the my main swf. When I don’t have the preloader in the movie that loads on level 1, the buttons work fine. When I add the preloader, the button functionality is lost. The real problem with the way it works now, is the user has no idea that the movie is being loaded and it may be frustrating for them.

I have no idea and if someone is nice enough to try, I would really appreciate the help. Thx!!

The code I have used to load the swf on top of the main swf is

on (release) {
loadMovie(“flashnav_clientresults.swf”, 1);
}

An example on the web of the way it works currently with no preloader, but functioning buttons is located at http://www.shr.com/fairmont.html

An example of the way I would like it to work with the preloader, but no button functionality is located at http://www.shr.com/fairmont_pl.html

I have uploaded the FLAs of both versions to
http://www.shr.com/ClientMenu.zip
(size is 392kb for the zipped folder)