Mixing Flash with HTML

I'm building a Flash nav with dropdown menus that will drop down in front of some html (i.e. text, buttons, images). In my initial testing, even though the drop down area in my Flash movie is transparent, it's still physically in the way if I try to get to html buttons or text underneath.

Is there a way for a Flash movie to change size, (i.e. get larger on roll-over to accommodate dropdowns, then get smaller on roll-off?

here's my test version:
http://moderndog.com/clients/test-site/