I had a look, and found a few solutions.
I did the kickback by adding velocity to the opposite direction of the orc.
The "death" animation isn't as flaky now, and the "block" animation should work better now. They use timers made with private variables.
The text glitch was simply the sprite that the spritefonts used flashing one very large frame. Setting animation speed to 0 fixed that.
http://dl.dropbox.com/u/5426011/fixed/orc.cap
A few observations though:
Generally it's more efficient to build your layout with many smaller pieces instead of on large image. In your case it would at least be more efficient to use a sprite or tiledbackground instead of a canvas.