I am new to flash and I am trying to see if there is a way to decrease the file size of this banner. The pictures were imported to flash by using a .png file. Should I be importing the photos another way? I tried making the quality worse when exporting the movie, but i am not happy with how the images look when the quality is reduced.
It really isn't the flash file that creates the massive file size. It's the rotating images you use. Are you compressing the images at all when you export the FLA file to a SWF? Try increasing the image compression. If you want a large number of rotating images, perhaps just embed the first image in the SWF file and use ActionScript to dynamically load the remaining images and switch them?
That way you cut down on the initial download size.