Got it. Needed to use this on the timeline:

Code:
playPause.onRollOver = function() {
	if(this._currentframe == 1) {
		this.gotoAndStop("pauseover");
	}
	else {
		this.gotoAndStop("playover");
	}
}

playPause.onRollOut = function() {
	if(this._currentframe == 10) {
		this.gotoAndStop("pause");
	}
	else {
		this.gotoAndStop("play");
	}
}

playPause.onRelease = function() {
	if(this._currentframe == 10) {
		this.gotoAndStop("playover");
		ns.pause(true);
	}
	else {
		this.gotoAndStop("pauseover");
		ns.pause(false);
	}
}

Then I just got rid of my goofy AS in the pause/play clip itself -just used frame labels.