Your gotoAndPlay doesn't work because you aren't telling flash what object you want the gotoAndPlay to work on. Since you don't specify it tries to do it on whatever object is making the call, in your case the button, so nothing seems to happen. First give the morphing block and instance name like myBox in the properties box (this is how flash references all objects on the stage). Then on the button, use that name to target the goto action to the clip
Thanks. Just one thing - when i click on replay, animation plays but the replay button stays there. I want to have the animation run as how it ran the first time (replay button appearing at the very end) - is this possible?