Mmm. He. This is pretty good!
Btw. I know im not knox.. But i do know how to compress withouth that much quality loss.
Import all the avi files into flash on 100% quality, add the sounds, then export the movie as AVI. Then import that AVI in flash at 90% quality. and voila. Better compression, and also good quality. Thats how knox does it if im correct.
Btw. Work on your character designs. and some of the animation could be a bit better. but for the rest its good :D
3/5