I found the old files in my laptop yesterday and decided to put my improved post-production and Flash skills to good use! Now Akaru doesn't have the strange white outline around him anymore. There's still some weird oddities but overall I'm pretty satisfied with the one day of work I spent cleaning it up.

Also I can finally upload it to FA without redirecting to youtube or vimeo, yay! (The video downloads from my public Dropbox folder)

EDIT: For some reason the video player interface doesn't appear in the Flash player. The video should still play, though! I hope.