Watercolor effect

I was looking through the tutorials on kirupa and i stumbled across the dynamic animating mc’s and i was intrigued. So i made a canvas graphic real quick and imported it into flash and tested it out. at first it didn’t look so good not like paint on canvas, then i changed the blend to overlay and it looked much better.
But now I’m stuck. I would like it to have a smoother transition so you don’t notice the circles and no jumping. anyone have any ideas?