The way Molehill is implemented currently by Adobe means it (the Stage3D instance) always sits in the background and cannot be made transparent.
This is also the same for the Flash Player 10.2 StageVideo as this is GPU rendered also. In effect, you can have either StageVideo or Stage3D in the background, but not both, and any conventional Flash rendering/interactions sit on top of either of these. See here for the official word :- http://www.adobe.com/newsletters/edge/january2011/articles/article1/index.html?trackingid=IEHCK Having a Plane facing the camera is the way to go on this one, I think. Greg
