Peter,
You're absolutely correct here, except that "home" should be a constant defined somewhere. But otherwise, you've got the gist of it.
The type parameter is to allow an instance that has been notified about something to determine if it really needs to take action. This can help reduce the overall number of notification names in the system.
I realize there is no guidance on this matter yet, but I'm actually building it into the FlashLite game that I'm writing as a demo for the AS2 port. And of course, I'll be updating the Best Practices doc with it soon, as well. Thanks for bringing it up here with a nice code example that I can point people to until I can get the docs updated
-=Cliff>-=Cliff>