Overlay object problem

Hi all!

I'm currently working on a game that I would like to enter in a contest, but if I don't, I am going to work on it afterwards anyway. The one problem that's holding me back, is a problem that has persisted throughout my use of this object. I have a active overlay, overlay redux 2, and an alpha channel(probly don't need) connected together. What I'm having it doing, is this. After the player activates a certain number of towers in the frame, the sky goes dark, and a little circle of light appears around the player. Well, the problem starts when the player starts to move! Part of the darkness is wiped away back to normal color. This is not what I wanted to happen. :( Granted, just a clear circle around the player isn't that appealing, but I'll go with it for now. If anyone's interested, here's the source code:

http://www.filefront.com/14712941/DarkenWorlLighting.zip/

CAUTION! After clicking link, do NOT click right away! A full page add pops up with a top banner. You can then click the 'SKIP ADD' button on the banner to be taken to the download section.

Thanks in advance for taking a look!

Did anybody try this? Or am I in the wrong forum for this question?

I'm not trying to be an arse or anything. I just want to know if its code related, or object bug related, or both. If it is code related, then how would I fix it? I'd really like to use this feature in a game or two. I have also discovered that the lives object drags itself across the screen on the right edge of it. And also I cannot get a counter to appear for nothing.

Any tips? Or a scrolling example of this would be good?

Replace:
"Overlay: Replace color 0,0,0 with 0,0,0"
with:
"Overlay: clear with color 1,0,0"

EDIT: In the darken group

Or not.

I'm just gonna leave it for now. In my other project, it will not work. I'll upload that later. And in the uploaded project, I have the original line, yet a line above that that has the solution. So it works there, but I dunno how. Later.

(Thank you anyway! I appreciate someone trying to help.:))

Yes, my change fixed the version you uploaded. If another file doesn't work too, it's a different problem :)