These days, in a lot(if not all) sidescrolling flash games you will see what I refer to as a "Three Layered Environment" system. In my own words; this system is to make things appear at a distance in the background. You have the furthest point, which usually moves very slowly as you move, the middle point, which moves slow but not too slow, and your actual placement, which moves as you do.
More or less, to create this system I simply used BYOND's offset screen location
screen_loc="1:1,2:1" and big images(which really should be revampted to 32x32 images because the big ones cause undesired results if the interface isn't made just right).
Anywho, becides the shotty images I made(and the decent background I found on google ^-^), I think it turned out pretty nice...
Check it out.
P.S. You're supposed to be a dragon :p... All you can do at the moment is move.