For more information please refer my weblog:
http://weblogs.macromedia.com/auhlmann/
and my MAX 2006 presentation at:
http://weblogs.macromedia.com/auhlmann/archives/RI201W_TCE_Uhlmann.pdf
Origin of this file:
http://weblogs.macromedia.com/auhlmann/archives/DistortionEffects.zip
examples - see DistortionExamples.mxml
bin - Use the included SWC component for production
source - source code