Hi, folks.

I've been playing around in Adobe Flash CS3 Professional for the last few days, and have managed to learn and successfully execute the basic tasks required to make a
dress-up doll. (Converting the layers into something that you can drag around and place, essentially.) What I'd like to know is if it's possible to open a .JPEG file (or a similar type file) and convert it into a file type that I can add actions/script to, and if so, what sort of file type would that be. I've been hearing a lot about needing to convert to a .SWF, but after reading up on the process, I'm not getting a straight answer. I see a lot of "Download this program!" and a lot of confusing coding that I don't know what to do with.

For reference, this is the process I'm using. I'm new to Flash and only know the very basics, so I'll just provide as much information as I can...
1. Create new file. (AutoScript 2.0)
2. Draw image. Name “Base” and lock.
((I'd like to use a .JPEG or something similar from Photoshop in this step.))3. Create new layer. Draw clothing/etc.
((Again, .JPEG.))4. Right click clothing/etc. Select “Convert to… Movie Clip”.
5. Right click again. Select “Actions”.
((Can't add script to a .JPEG.)) Type in the following:
1 on (press) {
2 startDrag ("");
3 }
4 on (release) {
5 stopDrag ();
6 }
I realize that you can draw directly in Flash, but truthfully, I find it a bit awkward and prefer the level of control I get from a program like Photoshop, hence the conversion issue. Any help on this subject would be appreciated. Thanks!