Using Video as part of the interface, flashwebpage

I had plans to create a great looking flash site with a main motiongraphic animation exported from after effects. I wanted to implement it seamlessly so it wasnt just a video playing in a small area.

turns out file size is a huge problem, I first tried importing a .mov and had it compressed. It turned out very degraded in quality and its file size was still big.

next I decided to rid the video of its initial background, and just have a transparent bg. Export from AE as a png image sequence, then place into a mc. The png’s file sizes are still so big, 250kb per file, about 255frames. the swf with just this animation is 11mb.
I turned jpg quality all the way down, and then it became 5mb. still too big.

Is it possible to optimize my png’s? In photoshop there are no options to do so.

Are there any flash sites with lots of video incorporated in the interface? Not just video playback area that can be loaded seperately?

I may have to think of a redesign.