Okay, after opening Flash, I changed the document size to 550x700 pixels via the modify/document on the menu bar. This size will fit the photo better.
Next, I imported Tom's pic onto the stage using file/import/import to stage. I named this layer "photo". (d'uh) The pic is smaller than the document so using the free transform tool, I pulled the corners to increase the pic as close to the document as possible. *This really doesn't matter much as we can always change the size to fit at the end but let's stay organized :-) I then added another layer called "pencil" to do my drawings on using the pencil tool. Now this may sound stupid, but don't get "enlarging the photo" with the transform tool (stretching) mixed up with "zooming in" with the magnifying tool.
Now, using the magifying tool, I zoom in on the eyes as that's where we'll start. Make sure to lock the "photo" layer.