Look, that was awful. I couldn't watch the whole thing. Some tips...
1. Try not to get that white outline when cutting and pasting. Just zoom in and delete those white lines. (yes I have made flash before, it wasn't very good, but I still know quite a bit)
2. Avoid doing this type of animation. It never works well unless it's those japaneese songs being turned into english randomly. If you want to make steven hawaking sing and dance, Show him spinning around on his wheelchair, have him dancing actually. Make a backround for him. Then have random people come in and dance with him.
3. The type of dancing where you simply flip the guys doesn't look great. its not too difficult to just rotate the guys. The flip dancing I'm talking about was like, at the very begining those two pig faced things.