Flash Animation - Progress - I need HELP!

Okay, so I ran into a little speed bump; luckily I caught it early in the game.
I have the character as a movie clip in the beginning, so I can blur it in as the animation starts. But as you can see, the whole screen flickers a bit. It's not clean at ALL.
Is it because I'm using a movie clip inside a graphic? I don't exactly understand why that's happening when I export it into an avi movie.
If anyone has experience with this, can you tell me what I'm doing wrong so I can fix it?

[@NERDglasses]

compression maybe?

[@tehMorag]

Sadly I have not done anything of the sorts :(
But you are talking about @ 0:11?