flash actionscript: I'm working on an online game (MMORPG by another name), and right now, with all
the background items moving in behind the player as he moves, and the
onEnterFrame actions, it causes alot of "lag" in the App. Also, when I decide
to purchase Media Server and take the game to MMO level, that will suck up more
Memory still, causing more lag.

What can I do to avoid this?

if you're using flash 8 and your only on-stage changes are updates to various
movieclip _x and _y parameters, you can realize a significant benefit from
enabling the cacheAsBitmap property of your movieclips.

If you have installed all the example files with flash, you can find a good
example of what kglad is talking about here:

\Program Files\Macromedia\Flash 8\Samples and
Tutorials\Samples\ActionScript\CacheBitmap

no, it does not. you'll need to upgrade or optimize what you have now.