Cool thanks for the link. Wow and the capx is only a few lines for doing something so complicated! Rojo made another capx a while back which may help which was like the legend of zelda type games - would that help?
I was going to think about a continuously scrolling type game, rather than a "flick to the next" screen sort of game. I have an idea on how to do it, but was hoping someone would have made it already <img src="smileys/smiley1.gif" border="0" align="middle" />
To answer your other question about making it a finite island, you could always just keep track of your distance from your origin, so that when you get to the maximum distance, the screen will no longer scroll and no more map would be generated.