I can use inline images with TLFTextField referring to an URL. But I need to fetch it from library because it causing blinks every time when same image loaded. I tried to convert an image to MovieClip and load it like I could do it with TextField but no luck.
To be more specific I'm writing a chat application with icons but I couldn't find a decent solution about smilies.
Have you considered using html inside your TLF, you could then utilise library item identifiers as the src or the img tags.
<img src="myLibraryImage" width="100" height ="50"/>
update: the below link documents someone experimenting with this a few years back where they:
the InlineGraphicElement is documented here: InlineGraphicElement