As far as the swf displaying beyond its boundaries, when you load the file into another file, the file doing the loading defines the stage, and your loaded file essentially gives its stage up. One thing that you can try is to add a mask for the loaded movie. That should help to only display things under the mask.
For the slideshow, one thing you could try to do is to translate the AS2 version into an AS3 version. It would be a worthy learning experience. Otherwise, the best I can suggest is to search Google using "AS3 slideshow tutorial" and similar terms.
Also, you could create the slideshow as an AS2 file and load it into an AS3 file and still have it function.
Thanks. I was kicking myself as soon as you mentioned masking it, because I should have thought of it myself. As for the slideshow I'm exploring other options for it while pursuing an AS3 equivalant. I *DO* however have another issue I would like to offer up to the Flash community.
I have a movieclip playing within another movieclip in a Flash file. The file deepest nested (a logo) works fine by itself. The movieclip that the logo is part of (an ad) works fine as does the logo within it. Once I put the ad onto a larger Flash file, however the logo movieclip doesn't play. It displays it's first frame, waits the length of the movieclip, then displays it's last frame with none of the inbetweens. It may be that I am overcomplicating something that should be simpler, but is there any way of resolving this issue short of reanimating the logo within the ad animation? (For those interested, the logo animation was initially designed to go with several different things, not just the ad, hence why it was it's own movieclip and not integrated)