Nobody has answered in so long, and I had some time to kill (took me an hour!) so I rewrote it from scratch with some differences based on my rewrites of some of the examples.
I changed your bitmap to a TARGA tga file to provide transparency.
Both the source and tga file are in the paperclip.
If you wanted the ship to start and stop more smoothly, say so, it'd take me a few more minutes.
Also, it looks rather crappy without blending and such enabled, but it's complicated enough now.
Whoopsy! A fierce bug bars the way! Line 123 should be