[flexcoders] Not able to capture event dispached from custom state override - what's wrong?

[Dan]

I have a class TestOverride that implements IOverride. This class is 
dispatching event. I am trying to handle this event in application 
that contains states definition with one state that has TestOverride 
added, but to no avail. 
Why am I not able to capture this event?

Here is my code, it is very simple:
1. TestOverride

package org.testEvents
{
        import flash.display.*;
        import flash.events.Event;
        
        import mx.core.*;
        import mx.states.*
        
        public class TestOverride extends Shape implements IOverride
        {
                public function TestOverride()
                {
                }
                
                public function initialize():void{
                }
                
                public function apply(parent:UIComponent):void
                {
                        this.execute();
                }
                
                public function remove(parent:UIComponent):void
                {
                        //TODO: implement function
                }
                
                public function execute():void{
                        trace("execute")
                        dispatchEvent(new Event("testEvent",true))
                }
        }
}

2. Application:
<?xml version="1.0" encoding="utf-8"?>
<mx:Application xmlns:mx="http://www.adobe.com/2006/mxml";
        xmlns:t="org.testEvents.*" 
        layout="absolute">
                <mx:Script><![CDATA[        
        
        protected  override function initializationComplete():void{             
                addEventListener("testEvent", handleIt)     
                currentState = "start"   
                super.initializationComplete()  
        }
        
        public function handleIt(event:Event):void{
                trace("event handled")          
        }       
    ]]></mx:Script>
    
    <mx:states>
        <mx:State name="start">
                <t:TestOverride />                              
        </mx:State>
    </mx:states> 
</mx:Application>


When I debug the application, discpatchEvent is called and word 
"execute" written to console.