Today I continued on the level editor and I have introduced dragging of the scene using the middle mouse button. Similar in concept when you want to pan around in 3dsmax.
I have extracted the level code into an actionscript class and started using it in the game fla. So now we have level loading too :). I've started working on the scrolling of the level when the player moves the avatar. It's giving me some headaches to make the scrolling work pixel based rather than tile based. I will look into it tomorrow.