Wrong in so many ways.
Pro-Hitler flashes are just wrong in so many ways. A man that killed thousands of civilians and tried to take over the world should not be honored.
In terms of the actual flash, don't distort images, it looks terrible.
Also, inserting a bitmap that is larger than not the stage, but the actual area you have to work in, will result in the image being pure red once the flash is compiled. The best way around this is to take it into Photoshop, Fireworks, or Illustrator and slice it and put it back together and then group or convert it to a symbol so it stays together.