Scrollbar visible only when text extends beyond box?

I have a handmade scrollbar in Flash with basic buttons

see website here: http://nightstand.org/chenot/flash.html

and while looking for critique, the biggest complaint I get is “weird dots that don’t do anything.” they are intended for scrolling, but right now much of the content does not need to scroll (my client will be editing it; all the text & images come from external .txt files). i think it would make sense for these buttons to only show up when text needs to be scrolled, but i’m not sure how to go about doing it.