A good start
I think that you have made a decent enough start with the manipulation of the sprites, which is always a good solid platform to build upon, but there are some parts which you need to work on, to bring all of your skills into line:
Putting a solid black line along the base of the flash window, to contain the subtitles is a good start - granted, it cuts down the space with which you have to work, but it stops them being more of a hinderance to the flash.
When a character speaks, move their mouths and don't bother indicating on the subtitle bar of who is speaking.
The other thing I would suggest is a different graphic for the candy box. You've used the level 2 icon with a yellow background, but I would suggest that you at least get some sort of name added to it, before shrinking it down in size.
[Review Request Club]