With the Transform panel, you can have a bit more precise control over your transformations. When you use the Free Transform tool, you generally tug and drag and poke at it until it looks approximately correct. If you want to be a bit more precise and save yourself the effort of eyeballing your transformations, just use the Transform panel.
Flash Tip: Program Tools: Transform Panel
By Adrien-Luc Sanders, About.com Guide
The Transform Panel is one of many useful tool subsets found (typically) to the right side of your work area; they're stacked in a single column, and each is collapsible using the arrow on the left-hand corner, or detachable to be "floated" anywhere on your screen.
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