Nevermind,i have found a way. For anyone who is interested, basically in the resize even for the parent container that houses the FlexTransformManager, i iterate over all the items managed by the FlexTransformManager and use their transform matrix to scale them about the upper left corner (0,0). Here is a snippet.
private function resized(e:Event)
{
if(_manager!=null)
{
var scaleFactors:Point=new Point(this.width/_lastCoordinates.x,this.height/_lastCoordinates.y);
_manager.width=this.width;
_manager.height=this.height;
var i:Number=0;
for(i=0;i<=_manager.numChildren-1;i++)
{
var item:VisualItem=VisualItem(_manager.getChildAt(i));
var m:Matrix = item.transform.matrix;
var oldValues:Point=new Point(m.tx,m.ty);
m.translate(0, 0);
m.scale( scaleFactors.x, scaleFactors.y);
item.transform.matrix = m;
m.translate(oldValues.x,oldValues.y);
}
_lastCoordinates.x=this.width;
_lastCoordinates.y=this.height;
}
}
Love how TransformManager class plays well with manually scaled items. Super !