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Choosing Between ActionScripting 2.0 and ActionScripting 3.0 in Flash CS3

By Adrien-Luc Sanders, About.com

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You'll see that the New Document window offers you a number of options to choose from. The ones we're interested in are "Flash File (ActionScript 2.0)" and "Flash File (ActionScript 3.0)". Because the two are so drastically different in how they handle scripts, objects, and events, choose the one that you're most comfortable with and want to work in (or want to learn, if you're upgrading).
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