Originally Posted by iopred
The consensus is to use circle testing (without sqrt) for collision, it was proved just a page back to be the fastest by quite a lot, and for round bullets, it seems like the perfect choice.
The Movieclip+BitmapData renders faster than Movieclips with bitmaps in them because normal MC's bitmaps are treated as square vectors with a bitmap fill. BitmapData is cached and is faster to draw.
So use Movieclip + BitmapData for display, and circle testing for collision and you'll be on the right track.