Try setting the publish settings to AS3 and see if that works okay for you.
Yes I had but that just gives other errors/warnings and the file is then unusable.
1086: Syntax error:expecting semicolon before minus. var bg_img:background-img;
WARNING: Actions on button or MovieClip instances are not supported in ActionScript 3.0. All scripts on object instances will be ignored.
I'm pretty certain it's an actionscript 2 file and just looking for confirmation that they are in fact Actionscript 3 ONLY classes that wouldn't compile under actionscript 2 so I can somehow prove to the vendor that they're 'misinforming' me...
The above link had an extra / on it, should be:
Link to source file : http://www.kamunga.com/org.zip
The Sprite class came into being with AS3, so it doesn't belong getting imported into an AS2 file. While the TextField class exists in AS2, to invoke it does not require importing the class in an AS2 standalone file. So you are probably correct in saying those lines don't belong in the file, which I think you say you proved by removing them and getting things to work properly.
As far as trying to prove to a vendor that they are wrong... that's usually not a worthwhile endeavor regardless of the obvious. I don't remember ever dealing with any company that will admit it made a mistake.