Much better! I still had 32 lives and 168000 points when I decided to quit, but it was much more fun.
So far my best score is:
Score: 32496
Power orbs collected: 931. Bonus balls collected: 119. Bogus balls collected: 63. Overall problems complete: 245.
For some reason I am really bad at my own game. =p
I'd recommend reducing the amount of lives even further near the beginning of the game
I'll probably include this in the sequel. Better balancing, that is.
*edit*
What is desperately needed, I realised, is a difficulty setting. Players could set which difficulty to start at.
The reason you only see a blue square is because your flash player can't detect filters, which are an addition for flash 8 (think simpler versions of photoshop filters, but dynamic, changable by code at runtime =D ).
Flash 8 also has a garbage routine so it makes stuff run faster.