NESTED ANIMATION
MovieClip Symbols
Nested animation is an object on the stage that has its own animation. MovieClip symbol is the only symbol that is capable of nested animations. A MovieClip symbol has its own stage and timeline, which is independent of the main Timeline (Scene 1)
The picture here shows the inside of the MovieClp symbol, "Dragon". There are two timelines. One timeline "Mouth" has the animation of the mouth moving up and down.
This picture above shows the Main Timeline, "Scene1", with the "Dragon" MovieClip still on the stage. As you can see, Scene 1 contains one Timeline, which contains only the motion of the movieclip moving back in forth. The Animation within the "Dragon" Movieclip will play in a loop throughout the Flash movie.
FINAL SAMPLE
Final Sample of the Dragon Swf file