Problem with "Adding Thumbnails" kirupa tutorial

This tutorial found on:
http://www.kirupa.com/developer/mx2004/thumbnails.htm
Is extension of:
http://www.kirupa.com/developer/mx2004/xml_flash_photogallery.htm

The problem manifests itself when I substitute .jpg thumbnail with .swf one.

[color=silver](I need this because i need transparent thumbs, so i needed to import transparent gifs via swfs - i used [/color][color=silver]http://www.quiss.org/swftools/[/color][color=silver] to convert gifs to swfs if someone is interested - It is released under the GPL. )[/color]

XML is parsed ok, and the thumbnail is visible with other .jpg thumbnails. The problem is that it is not “alive”:

Clicking on it doesn’t change the main image, hovering doesn’t change its alpha:
[color=red]target_mc.onRelease = function() {
p = this.pictureValue-1;
nextImage();
};
target_mc.onRollOver = function() {
this._alpha = 50;
thumbNailScroller();
};
target_mc.onRollOut = function() {
this._alpha = 100;[/color]

Here is portion of XML:
[color=red]<pic>
<image>images/72.jpg</image>
<caption>Nathan Never 72</caption>
<thumbnail>images/t_72.swf</thumbnail>
</pic>[/color]

Anyone have ideas?

I thought that there is no difference between .jpgs and .swfs once imported.