First impression... why aren't the categories in the main swf buttons? Would give the user another option, and could get rid of the message over the picture then..
Yes, I was planning on making them buttons. The only reason that I have not yet done so, is that I would like to wait until all pages are created. No point in redoing it twice.
I do like the layout, super simple grey & white, however, I'd say the menu images representing each section need some serious work.
Each photo look better with a defined border around them of some kind, and the aspect ratio needs to be fixed. The little kid's head looks like a lemon! (They all seem to be suffering from this squash effect. in Firefox at least..)
This has been purposely done, basically to keep the thumbs all the same size. I (and the client) wanted them to fill up the space completely, because with photos of various aspect ratios it looked kind of strange.
I agree though, that some do look odd (especially the "melon" headed child as you put it

) I figure I could do one of 2 things to overcome the squash effect, and still have the entire space filled. I could simply create images with an aspect ratio comparable to the viewable area of the thumbs, or I could maybe enlarge the thumb slightly and just have edges hidden with a mask. You definitely have got me thinking

A bit more economy with the side-nav, and users would't have to scroll down (at least on a res of 1024 +).
What do you mean here exactly? Shrink the total size of the thumbs to allow more to be viewed in the scrollpane at one time? That could be possible, although I would not want to make them too small.
You need a favicon, meta tags, copyright notice, and some contact details at the bottom of your site.
I sure do. I just read about favicons and it seems pretty simple. Copyright notice will also be added. Contact details? Not sure about that although maybe a link to the contact page? And all the pages for that matter maybe. Just a row of text links to each page would be good I think. As for meta tags, these will be done at the end. The html page is straight from the flash app, so nothing will be done until completion.
Have you tested your site on a lower end machine? I'm just thinking that they may not have the processing power to deal with the fade tweens you implemented (nice preloader btw, any chance you could whack in a numerical value too?)
I sure have tested it. I'm on a p2 300 with 128megs of ram, and it all seems to run fine. Looks even nicer on fast machines though. The beauty of developing on a 4 year old pc

Once in a section, shouldn't the main entrance intro menu icon turn to color to indicate it isn't selected?
Well the idea with that was that you would know what pages you have viewed, and what ones you have not. Makes a big difference when looking at images in the portfolio folders.
Also, there's no implementation of anchor tags in the flash movie, which would allow users to use their browsers back button (those that support fscommands from flash), and is it usable?
I have been thinking about this, but with the structure of the actionscript, component issues, as well as other reasons, it would be a monumental task. Especially since I have never used it in a simple form. This may be something that I will slowly work towards after the site is up and running. I figure that once users learn how to navigate the site, the will be able to get "back" quite easily by actually going forward. (if you know what I mean) That's why I started the help section, and I will improve it and add tips etc...
Sorry if this seems like a real bitch, just I'm a fan of web standards (doable with flash), accessibility (I do a lot of work for charities that need this, AAA, 508 etc..). I love flash websites, and I'm studying hard at Actionscript, I just feel the site would be better implemented along the lines of istockphoto or something (obviously without the user sign-up part).
And also I have to thank you for checking out my own site, and for the tip about the reset button which I added immediately. A few tweaks in your swf, and your site'll rock!!
Much potential though.

haha, I asked for criticism, and that's what I got! No offence taken by anything, I'm just here to learn, so all's good. I will have to do more research on these "web standards" everyone is always talking about. Don't know much about it

I've just been teaching myself everything I know - a year ago I couldn't even use the getURL statement!
Thanks again for the comments and suggestions.
Keep 'em coming!
Mike