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How does one go about creating these "Smart Objects" I've looked through the .fla file in animate and I think I'm beginning to understand how they are made, but it seems terribly complicated.

It's actually pretty simple, but it does require some instructions - I hope to be able to write those up if everything else is ready.

Okay cool!
I'm not a flash guy, just got the animate trial, so everything is terribly complicated to me in that respect!
I just hope that it is easier than in KS 0.5!
Good luck!

Will try to do a video tutorial to make it a bit easier :)