You need to embed the following code in your program, this will give you the expected result.
Code:
event.target.parent.removeChild(event.target);
and you need to use the best way to clear out a display with this:
Code:
while(myMC.numChildren > 0) removeChild(myMC.getChildAt(0));
Make a container movieclip, attach it, and attach your list items to the container.and If you're looping through a DisplayObject and are basing the loop on numChildren, then no need to remove children as the value of numChildren.
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