A solid start, but needs polishing
The fighting is hands-down some of the best actionscript sword-fighting I've ever seen, unfortunately, the rest of the game seems unfinished. On of the major problems with the gameplay is the questionable collision detection, for example, you can't get close enough to the orcs to do any major damage with your sword. Also, I felt that I moved to slowly around the game world, which made it boring. I found that both the orcs and stickman were easily built, maybe there is more difficult enemies but I didn't play that long. I must have played for about 10 minutes and it still didn't get hard.
The graphics are okay, I think you did the best you could and they certainly do their purpose. Although looking at the quality of the Orc I ask myself if you couldn't switch the stickmen for a better-looking character. Going with a LOTR theme, you could play a hobbit or man, the larger orcs now would be Urak-Hai and what is now stick man would be the Snargs.
I think you should take some time to do a better menu, it's not hard to make them look good. Add a nice sound loop, some better button graphics and some mouseover effects as well a background and most importantly, try to write things like the instructions better. Just doing simple "polishing" like that makes a really good first impression on viewers.
I really hope you take what I've said into account, this could be a really good game.