well, I figured it out... it is VERY easy. Open new movie, click import and there it is... PRETTY cool!!!
However, the original mpeg file is like 1.7meg, after importing, the swf comes to be 350 kb. Not bad compression, but still to big for quick viewing on a website.
I can optimize the file size a lot smaller, but the quality of the movie sucks
I guess I'm going to go with a simple animcated gif?
or just strip out all the "cool" fancy stuff in the flash movie.