Cool
You know... the problem with the sound might be that you forgot to set the sound layer to Stream rather than Event. Well that's how it seems at least. My computer's pretty slow so the music during the flying sequence stopped about 3/4 of the way before the scene where Cuddly jumps out. Stream sounds make the music synch perfectly with the animation forcing the .swf to keep up which ends up sacrificing a few frames if a computer is slow. But I'm sure you know this....you seem like you know what you're doing.
The animation was excellent by the way. I wasn't sure if Cuddly was 3D or not.