When you test your movie, you should be getting error messages like:
BG.as, Line 34 1120: Access of undefined property event.
The errors can give you a hint at what is going wrong. In this case, it's telling you that there is no property named "event". In your keyDownHandler function, you need to replace "event" with "ev" which is what you are naming your KeyboardEvent in the function declaration. So this should make your code work:
if (ev.keyCode == Keyboard.DOWN)
{
select.y = 250;
}
if (ev.keyCode == Keyboard.UP)
{
select.y = 200;
}
Also, you should use parenthesis when creating object instances. Even though it still compiles, you should be writing:
public var select:Select = new Select();