Another possible method would be to put a 32x32 mask over the sheet and just move the sheet around.
It would work something like (pseudo-code):
var spriteMask:Sprite = new Sprite();
spriteMask.graphics.drawRect(0,0,32,32);
spriteSheetContainer.mask = spriteMask;
function render():void { // this function is on the container of the sprite sheet (spriteSheetContainer in this example)
// run offsetX & Y iteration logic. I would assume something that uses a frame counter, modulus, and the sprite layout grid dimensions
_spriteSheet.x = offsetX; // move the sprite around under the mask
_spriteSheet.y = offsetY;
}
It's crucial to have the mask on a container of the sprite sheet and not the sprite sheet itself, so that you can move the sprite sheet independent of the mask.