I just whipped up a new ObjectHandles release.  Couple notable things...

They now automatically remove themselves from the SelectionManager when removed from the stage (they add themselves back when added as well).  This fixes a fairly serious memory leak.

I'm deprecating the useage of the Handle class.  It draws the handles through the drawing API.  Now, instead use the ImageHandle class which draws the handles from an embedded image.  There was some wonky logic in there that turned clipping on or off depending on this setting and that was just plain dumb.  Lets just do it one way.  I included sample .png files to simulate the old look.

I fixed some weird flickering when resizing to the left or up.  It only happened on certain cases, and I'm not sure why.  I think it had to do with delayed execution of the Flex layout manager.  Now, I delay the setting of x,y,width, and height and force a validateNow() right after setting those.  Let me know if this causes any problems in your application.

I still don't have conditional compile for Flex2/Flex3 in there, so this will only compile under Flex 3.  Does anyone know how to get that conditional compiling to detect Flex version without having to pass an extra compiler param?