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Yes, the 20 state limit still exists. If you are exceeding that limit, then you might want to consider how you design is constructed, or have that portion managed via code. For example, if you were creating a gallery site with 50 images, you could look to see if they could be combined into sub groups. Or create the framework of the design in Catalyst, then add some ActionScript with FlashBuilder to manage the images.
As to the resizable application, yes it should. Once you open your project in Flash Catalyst CS5.5, use the Modify > Artboard Settings menu to enable resizable application. You will still have to apply the resizing constraints to all you components, so they know 'how' to resize.
Hope this helps,
Good to see you again....
Given the complexity of my project I will not be able to make the grouping work for me. I would still be over the 20 state limit. I guess the second work around would be to take my AI design and try importing it into the new 5.5 and rebuilding all the functions. Almost starting completely over. Might be a good idea since the client keeps adding new locations to the map.
Have you seen the new resize option in action? My current project is at 1024 x 720 or so. It will be nice to have it automaticaly resize according to devices. Does this option only happen when exporting as AIR or swf?