1. How do I use movieClipInstance.setDepthAbove() in the this code? Will this be able to make logoH appear above all other movieclips?
var logoHolder:MovieClip = logoH.createEmptyMovieClip("logoHolder",logoH.getNextHighestDepth());
2. How do I make this action function when the mouse is clicked elseware on the stage?
What is setDepthAbove() ?
Method; sets the depth of a movie clip or component instance above the depth of the instance specified by the instance parameter and moves other objects if necessary.
You are apparently trying to use someone else's code since that is not in the AS2 arsenal as far as I know. So you'll have to interpret the method/usage instructions as best you can and try to implement it different ways until it works. Based on the description you provided and your intention to put the object above all others, I would guess it would be used like...
logoH.setDepthAbove(whatever instance is highest);
though it is unlikely it will be recognized as a legitimate method of logoH unless you assign it to logoH.