I was really happy when I found out how to do proper fade outs of MovieClips containing other MovieClips, but I am even more happy now because I found how to do it in ActionScript 2. I don’t know why but I was thinking that blendMode was something new that came in Flash 9, but I actually knew it came with Flash 8 at the same time that filters came in. I woke up when my colleague told me he and to roll back an animation from Flash 8 to Flash 7 and had to loose the blendModes because of that.
The way to do it is really similar than in ActionScript 3, it’s actually way easier but more prone to errors (if you mispell “layer” the compiler won’t tell you):
my_mc.blendMode = "layer";
That’s all there is to it.