flash actionscript:

your textfield should be an html-enabled textfield and you can then use the img
tag to add an image. if the image is in your swf's library assign it a linkage
id and use that for the src property of your img tag. if your image is an
external file, use that path/file name as the src property.

good luck with positioning everything.

cheers, i will try that out, is a dynamic text box automatically html-enabled?
or am i meant to change a setting somewher?

the text is very long in that text box...is it possible to have buttons
outside of the text box on the side, that jump the user to certain areas within
that text box?