Alright, some issues.
1. The sparkle animation on the one buttons has got to go. It just looks horrendous. Animations and web sites don't really go well unless your site is specifically for animations. Otherwise they look tacky and unprofessional (though I'm not sure if your aiming for professional). When making graphics you must consider to keep a general demographic so that everyone can enjoy your site. Settle for regular hover buttons. I know that you want to let users know what category they have selected, but using an animation isn't the best way of doing this. Settle on a nice border that lets users know when they have it selected.
2. The background kills your eyes. Red to purple gradients, as long as I have been web developing, never seem to work as they play tricks with sensitive eyes. The top banner gradient also needs some work.
3. Why is everything moving when you hover over it? No, I'm not talking about the icons, I'm talking about the site in general. It moves whenever you hover over it. Not good.
4. Your site is all flashed based, and I must say not optimized well. It is slow to load, and is slow to navigate.
5. The icons look pixelated. They look pixelated whenever you see them regularly, but get worse whenever you hover them
As for your general layout, it's nice and easy to navigate. Not much else about it.
I've included a video describing the hover problem. I am using Firefox 3.5, though I've tried it in Chrome and Internet Explorer and are having the same issues. Sorry if the video quality might be a bit low, but it explains what I mean.
The video.
Temporarly away from the Phoenix Sentry.