3. You create ONE flash.display.Bitmap for your main game area and then "copyPixels" from your sprite sheet onto that bitmap for EACH
of your sprites. This is the more traditional "game loop" and is actually quite fast.
That's exactly the kind of idea I was referring to, I'll give that a go and see how it works out, besides I can see that this way will allow me to do some nice screen-sized "effects" for transitions etc.