Transparent video on top of other video

I have one problem with two external flv clips in flash, one on top of other, the top one has transparency.
When the bottom one is ON the top one loses it’s quality and when the bottom clip is OFF the top one looks great, at least that’s what happens on my comp. Both clips are compressed at high quality.
http://www.7templates.com/video
Do you have any idea why this happens or how to fix it?