Kay, few things I suggest:
Number 1: You spelt my username wrong :3 it's "Tarantulakid96" double check next time, because if it's wrong in the complete version I will come back with my rage face on.
Number 2: The music doesn't loop, you should probably fix that.
Number 3: Not everything is draggable, but I'm sure you'll get around to it later.
Number 4: I suggest (So things don't get too cluttered) is that you make buttons on the left and right sides of the backgrounds and make it so you can scroll through them instead of having to drag them around. Also, you should toss in some backgrounds from Incident 001A just so that there is more of a selection.
Number 5: If this is a work in progress, you should've submitted it here: http://www.newgrounds.com/dump/ and then posted a link to it in your blog.
Do this stuff, and it will be awesome. Also, maybe if you are good enough with scripting, you could add multiple soundtracks to select from, maybe the Incident 010A music and the Incident 001A music.
And ONE last thing: You should probably put somewhere instructions for the rotate script, because some noobs will complain that they can't rotate the sprites when you actually can.
...That is all. :3