Agh, my eyes!
So far you have a major problem with contrast; it's difficult to read anything because of the complexity and similiar colors in the background of the text. Get rid of the gradient menus and use neutral tones, like grey or dark blue, for menu backgrounds. As far as the graphics, some times simplicity is a good thing. It seems to me that the warrior has way too many lines going on in his armour.
For improvements, it'd be nice if I knew exactly what I'm fighting; how about a caption with the name of the enemy? I also noticed that this particular diamond monster has a nasty habit of missing; you might want to tone down the player's evasion. Sound effects would be nice, too.
Finally, your replay button is broke. Have it do a gotoAndPlay(1) instead of attempting to reload the movie; it's much more efficient that way.