The modifications you have made are correct and the behavior I can see on your online version is also correct... So I don't have any convenient answer to your problem. You can let on loadcomplete, so the flashing hotspot will change after the loading of the panorama completed, and not at the begining. About the krpano documentation, his online doc isn't complete now but he is working on it. You can find most of what you need for newest version by reading the releasenote.txt file in the krpano package on his website (download page).