AS2... ah... the memories (more like nightmares).
Try out my 'good-old' BitmapLoader.as... I've used it for many many years and has never failed me yet... It's not beautifully written and there are some double scope setters in there... but I don't care. It's old, and it has done it's job perfectly (always!). It needs a Boolean in the constructor which sets the smoothing to true or false
import flash.display.BitmapData;
class BitmapLoader extends Object {
 private var mLoader : MovieClipLoader;
 private var scope : Object;
 private var _mc : MovieClip;
 private var _url : String;
 private var _func : Object;
 private var smooth : Boolean;
 public function BitmapLoader(smooth : Boolean) 
 {
  this.smooth = smooth;
  mLoader = new MovieClipLoader( );
  addListener( this ); 
 }
 public function addListener(inListener : Object) : Void 
 {
  mLoader.addListener( inListener );
  scope = inListener;
 }
 public function removeListener(inListener : Object) : Void 
 {
  mLoader.removeListener( inListener );
 }
 private function onLoadInit(inTarget : MovieClip) : Void 
 {
  var bitmap : BitmapData = new BitmapData( inTarget._width, inTarget._height, true, 0x000000 );  
  bitmap.draw( inTarget );
  var parent : MovieClip = inTarget._parent;
  var img : MovieClip = parent.createEmptyMovieClip( "imageloader_smooth_mc", parent.getNextHighestDepth( ) );
  inTarget.unloadMovie( );
  inTarget.removeMovieClip( );
  delete inTarget;
  img.attachBitmap( bitmap, img.getNextHighestDepth( ), "never", true );
  scope[_func]( img );
 }
 private function onLoadError(errorCode : String, httpStatus : Number) : Void 
 {
  error( errorCode, httpStatus );
 }
 /**
  * loadBitmap( http://www.test.nl/img.jpg, movieclip, "dothis");
  */
 public function loadBitmap(url : String, mc : MovieClip, func : Object) : Void 
 {
  _url = url;
  _mc = mc;
  _func = func;
  var raw : MovieClip = _mc.createEmptyMovieClip( "imageloader_raw_mc", _mc.getNextHighestDepth( ) );
  mLoader.loadClip( _url, raw );
 }
 private function error(errorCode : String, httpStatus : Number) : Void 
 {
  var raw : MovieClip = _mc.createEmptyMovieClip( "imageloader_raw_mc", _mc.getNextHighestDepth( ) );
  mLoader.loadClip( "img/notfound.jpg", raw );
 };
}
You can use this class like this:
    var loader : BitmapLoader = new BitmapLoader( true );
loader.addListener( this );
loader.loadBitmap( "http://test.nl/example.jpg", this, "doneLoading" );
'true' is the smoothing-boolean, addListener( this ) is to prevent scope-problems (AS2-bleeh) and "doneLoading" is the function name it calls when it's done loading.
Hope this works for ya.
Good luck!