Level code

         var vx: int = 0;
         var vy: int = 0;
         var rightInnerBoundary: uint;
         var leftInnerBoundary: uint;
         var topInnerBoundary: uint;
         var bottomInnerBoundary: uint;
         var leftarrow:Boolean
         var rightarrow:Boolean
         var downarrow:Boolean
         var uparrow:Boolean
         var hitting:Boolean

        if(!stage){
            this.addEventListener(Event.ADDED_TO_STAGE, stageReady);
        }else{
            stageReady();
        }


         function stageReady(event:Event = null):void {
            stage.addEventListener(KeyboardEvent.KEY_DOWN, keyUpHandler);
            stage.addEventListener(KeyboardEvent.KEY_UP, keyDownHandler);
            stage.addEventListener(Event.ENTER_FRAME, enterFrameHander);


                    rightInnerBoundary = (stage.stageWidth / 2) + (stage.stageWidth / 4);
                    leftInnerBoundary = (stage.stageWidth / 2) - (stage.stageWidth / 4);
                    topInnerBoundary = (stage.stageWidth / 2) - (stage.stageWidth / 4);
                    bottomInnerBoundary = (stage.stageWidth / 2) + (stage.stageWidth / 4);


             function keyUpHandler(event: KeyboardEvent): void {



                if (event.keyCode == Keyboard.LEFT) {

                    leftarrow = true;

                } else if (event.keyCode == Keyboard.RIGHT) {

                    rightarrow = true;

                } else if (event.keyCode == Keyboard.UP) {

                    uparrow = true;

                } else if (event.keyCode == Keyboard.DOWN) {

                    downarrow = true;
                }



            }
             function keyDownHandler(event: KeyboardEvent): void {

                if (event.keyCode == Keyboard.LEFT) {

                    leftarrow = false;
                }
                if (event.keyCode == Keyboard.RIGHT) {

                    rightarrow = false;
                }
                if (event.keyCode == Keyboard.UP) {

                    uparrow = false;
                }
                if (event.keyCode == Keyboard.DOWN) {

                    downarrow = false;
                }
            }

             function enterFrameHander(event: Event): void
            {

                    character.x += vx;
                    character.y += vy;
                    characterBlock.x = character.x;
                    characterBlock.y = character.y;

                        {

                            if(character.hitTestObject(fakewallmc))
                              {
                               hitting = true;
                                 } else {
                               hitting = false;
                                 }


                        if(leftarrow = true){
                                vx = -5;
                               character.gotoAndPlay("WALKL");
                            }
                            if(leftarrow == true && ! hitting == true){
                                vx = 0;
                                character.gotoAndStop("IDLEL");
                            }

                            if(leftarrow = false){
                                vx = 0;
                                character.gotoAndStop("IDLEL");
                            }
                        }

                        {

                           if(rightarrow = true){
                                vx = 5;
                                character.gotoAndPlay("WALKR");
                            }
                            if(rightarrow == true && ! hitting == true){

                                 vx = 0;
                                 character.gotoAndStop("IDLER");
                            }
                            if(rightarrow = false){
                                vx = 0;
                                character.gotoAndStop("IDLER");
                            }

                        }
                            {
                           if(uparrow = true){
                                vy = -5;
                            character.gotoAndPlay("WALKR");
                          }
                            if(uparrow == true && ! hitting == true){

                                 vx = 0;
                                 character.gotoAndStop("IDLER");
                            }
                            if(uparrow = false){
                                vx = 0;
                                character.gotoAndStop("IDLER");
                            }
                        }

                        {
                            if(downarrow = true){
                                    vy = 5;
                                   character.gotoAndPlay("WALKL");
                          }
                            if(downarrow == true && ! hitting == true){

                            vy = 0;
                              character.gotoAndStop("IDLEL");
                            }
                            if(downarrow = false){
                                vx = 0;
                                character.gotoAndStop("IDLEL");
                            }


                        if (character.x < leftInnerBoundary)
                        {
                            character.x = leftInnerBoundary;
                            rightInnerBoundary
                            = (stage.stageWidth / 2) + (stage.stageWidth / 4);
                            background.x -= vx;
                        }
                        else if (character.x + character.width > rightInnerBoundary)
                        {
                            character.x = rightInnerBoundary - character.width;
                            leftInnerBoundary
                            = (stage.stageWidth / 2) - (stage.stageWidth / 4);

                            background.x -= vx;
                        }
                        if (character.y < topInnerBoundary)
                        {
                            character.y = topInnerBoundary;
                            bottomInnerBoundary
                            = (stage.stageHeight / 2) + (stage.stageHeight / 4);
                            background.y -= vy;
                        }
                        else if (character.y + character.height > bottomInnerBoundary)
                        {
                            character.y = bottomInnerBoundary - characterBlock.height;
                            topInnerBoundary
                            = (stage.stageHeight / 2) - (stage.stageHeight / 4);
                            background.y -= vy;
                        }

                        //Check the stage boundaries
                        if (background.x > 0)
                        {
                            background.x = 0;
                            leftInnerBoundary = 0;
                        }
                        else if (background.y > 0)
                        {
                            background.y = 0;
                            topInnerBoundary = 0;
                        }
                        else if (background.x < stage.stageWidth - background.width)
                        {
                            background.x = stage.stageWidth - background.width;
                            rightInnerBoundary = stage.stageWidth;
                        }
                        else if (background.y < stage.stageHeight - background.height)
                        {
                            background.y = stage.stageHeight - background.height;
                            bottomInnerBoundary = stage.stageHeight;
                        }

                        ////////

                        var i;
                        var realwallmc: MovieClip;
                        var fakewallmc: MovieClip;
                        for (i = 0; i < 10; i++) {
                        realwallmc = background["wall" + (i + 1)];
                        fakewallmc = this["wall" + (i + 1)];
                        fakewallmc.x = realwallmc.x - background.x;
                        fakewallmc.y = realwallmc.y - background.y;
                        }

                    }
                }
            }