I'm not sure exactly what kind of repelling effect you want to achieve, but you can base your code on a simple physic principle : the gravitational force between two mass. You can read more about it on wikipedia. Here's the formula (from wikipedia) :
F = G * (m1 * m2) / r²
F is the magnitude of the gravitational force between the two point masses,
G is the gravitational constant (about 9.81 m/s²),
m1 is the mass of the first point mass,
m2 is the mass of the second point mass, and
r is the distance between the two point masses.  
You can simplify this if you don't want to account mass (i.e. both object have a mass of 1) :
F = G / r²
This is great, but as the definition says, F is only the magnitude of the force, i.e. you don't know the direction, only the amount. To get the direction, you'll need some vector :
F_12 = - G / r_12² * ru_12
Where :
F_12 is the vector of the force on object 2 due to object 1.
G is still the gravitationnal constant
r_12 is the distance between object 1 and object 2.
ru_12 is the unit vector from object 1 to object 2.   
Check out this site for a smooth introduction on vectors and liberate yourself from all this trigonometric stuff.
But note that the gravitationnal force is an attraction force. You can easily change this to a repulsion force by inverting its direction.
Implementation
Alright, enough about theory. I've implemented a function which simulate this.
//make sure you set your initial conditions
obj2.vx = 0;
obj2.vy = 0;
function repel(obj1:MovieClip, obj2:MovieClip) {
    var G:Number = 100; // gravitationnal constant. You can play with this to get more or less force.
    var res:Number = 0.9; //a coeffient which reduce the speed when the object hits a wall.
    //this is a vector from obj1 pointing to obj2
    var distVector:Point = new Point();
    distVector.x = obj2.x - obj1.x;
    distVector.y = obj2.y - obj1.y;
    var distance:Number = Math.sqrt(distVector.x*distVector.x + distVector.y*distVector.y);
    //a unit vector is a vector of length 1
    var unit:Point = distVector.clone();
    unit.x /= distance;
    unit.y /= distance;
    //here's the actual formula
    var force:Point = new Point();
    force.x = G / (distance*distance) * unit.x;
    force.y = G / (distance*distance) * unit.y;
    //we don't have any mass, so a = F
    var ax:Number = force.x;
    var ay:Number = force.y;
    //simple integration
    obj2.vx += ax;
    obj2.vy += ay;
    obj2.x += obj2.vx;
    obj2.y += obj2.vy;
    // bounce to stage dimension
    if(obj2.x < 0){
        obj2.x = 0;
        obj2.vx = -res*obj2.vx;
    }
    if(obj2.x > stage.stageWidth){
        obj2.x = stage.stageWidth;
        obj2.vx = -res*obj2.vx;
    }
    if(obj2.y < 0){
        obj2.y = 0;
        obj2.vy = -res*obj2.vy;
    }
    if(obj2.y > stage.stageHeight){
        obj2.y = stage.stageHeight;
        obj2.vy = -res*obj2.vy;
    }
}
To use it, call repel at a regular interval. Note that obj1 will not be affected by the simulation. In my prototype, obj1 follow the mouse.
Try it and tell me what you think. 
On a side note, using the Timer class is not faster than listening to ENTER_FRAME in any way. See this article and its two related articles for a better understanding.