scaling sprites seams to act relative not absolute.
To scale a sprite smooth declare a object variable e.g. myscale (initial set to 1) and reduce this every second by e.g. 0.1
Save the initial width/height of the/each sprite in an object variable at startup.
The each second set the sprites width to sprite.initial width * myscale and the the sprites height to sprite.initial height * myscale
something like this http://www.gameus.de/c2/downscale.capx