As you can see, alpha masks no longer work. See the original swf here.

Or download the project files.

UPDATE: THE FIX - Put your setMask() and elements entirely in their own MovieClip, and not on the timeline. For some reason the timelime renders differently, the problem has been reported to Adobe, even though it's probably better practice to do so.

Keywords: Actionscript Flash 8.0 alpha mask MovieClipLoader() setMask() problem breaks