I want to snap to target when drag object is near or over the target mc at all. As it is now, the registration points have to be exactly on top of each other.

I had something similiar where when a circle1 was dragged over circle2, it
would snap to the center of circle2. If that is what you are looking for, try
this



circle1.onRelease = function (){
stopDrag();
if(this.hittest(circle2)){
this._x=circle2._x;
this._y=circle2._y;
}
};