Try changing this code to following:
function moveObsticle():void
{
//move
var tempObs:MovieClip;
for(var i:int = obsticles.length-1; i>=0; i--)
{
tempObs = obsticles[i];
tempObs.y = tempObs.y - playerSpeed;
//test if obsticle is off-stage and set it to remove
if (tempObs != null && tempObs.y < stage.stageHeight)
{
removeObsticle(i);
continue;
}
//player-obsticle colision
if (tempObs != null && tempObs.hitTestObject(player))
{
gameState = STATE_END;
}
}
}