Sixsided
Interactive Dev in Portland, OR

Apparently when you apply a 3D transformation to a DisplayObject in a Flash / AIR app, it limits the area of the stage to which bitmaps can be drawn — that is, if aDisplayObject contains a bitmap graphic and a vector object, the bitmap will be masked to within the rectangle (0,0, 4096, 4096), while the vector object will be drawn normally no matter where it is. The only fix seems to be not to apply any matrix3D transformation — you can’t touch rotationY, rotationX, rotationZ, perspectiveProjection, or anything that affects the display object’s transform.matrix3D member.

Disconcerting!