I'm very familiar with Flash, but new to Flash CS3 and actionscript 3.0. I have two files called Test.fla and Test.as. In Test.fla I entered 'Example.Test' in the Document class box in the properties window. The Test.as code is below:

Code:
package Example {
	import flash.display.MovieClip;
	public class Test extends flash.display.MovieClip {
		public function Test() {
			trace("Testing");
		}
	}
}
I get the following error: "A definition for the document class could not be found in the classpath, so one will be automatically generated in the SWF file upon export."

When I remove the package name 'Example' from Test.as changing it to look like the code below, and changing the Document class in Test.fla to Test (instead of Example.Test), everything works fine.

Code:
package {
	import flash.display.MovieClip;
	public class Test extends flash.display.MovieClip {
		public function Test() {
			trace("Testing");
		}
	}
}
My question: What am I doing wrong? I want to make custom packages but can't figure out how to do it. I don't want to use just unnamed packages. Thank you in advance for any help you can give.