My apologies but I'm very new to working with Flash. I'm using CS 5.5.
I figured I needed to give my Roof Square Button an instance of "roof_area_btn" and added the following code in the Scene 1
var ct:ColorTransform = new ColorTransform();
ct.color = colorpicker.selectedColor;
selectedroof_area_btn.transform.colorTransform=ct;
But apparently that isn't correct.