Another fine bug from Adobe.. The hitArea gets screwed when you add one of the filters that uses blur (either GlowFilter, DropShadowFilter or BlurFilter itself) to your DisplayObject. This causes a lot of problems ranging from MouseEvents like MOUSE_MOVE, ROLL_OUT, ROLL_OVER not getting fired. You can see that even if you are over the clip, MOUSE_MOVE is by the stage and also the target is set to the stage. I suspect this to happen because of some optimizations on adobe’s code. There is a simple workaround for this though.. you will have to use another hitArea but the DisplayObject itself. Remember, this can be just a sprite that doesnt even have to be added in the display list.