Posting a .Cap always helps people to see what is going on.
Here it is: http://sites.google.com/a/mike-wyatt.com/mike-wyatt-s-blog/spacebattle.cap?attredirects=0
The "Ship" sprite object is called "Frigate" in the cap, and "Exhaust" is actually "FrigateExhaust".
Im not sure how the edit time handles containers, but i dont think it makes the for you. your better off having them created at runtime anyways.
I really hope I can get it working. I want to let the player choose different ships when the game starts, but not duplicate all the events for each ship type. Each ship could have different child objects, so I'd need to write custom event code that spawns them if the container won't take care of that for me.
Is Exhaust a sprite or a particles object?
Oops, sorry, that was a typo. The Exhaust object is a "Particles" object.
Anyhoo, when you select an object, the other objects in the same container get selected in yellow. When you create one, the others get created too, but you need to set their positions. Maybe they were created off-screen?
When running in debug mode, no additional exhaust objects are created at all.
Here's what the sprite/container looks like in the editor:
I've noticed that when adding exhaust objects to the ship container that I'm always selecting the same object from the list. I'd need a way to associate a specific instance, which I don't think I'm doing.