Nice short loop
I liked it, I think you should put in some sound though, maybe some kind of "wacky music", like the 'tricky music' or somthing like that, either way it needs some music. Try the audio portal, plenty of loop-tracks in there :)
I noticed its pretty damn jerky when it loops, but after awhile it gets cahed or what-not and smooths out, but I'm sure (the flash being black and white + it being so short) you could compress it, seriosly, pico was 300k, this could be 10.
Anyways, this got a 2 from me, and I hink its a worthy entry.