Can't display image from xml file

OK I’m stuck. I can get everything to display that I want to except the image.
I keep getting the error:
Error #2044: Unhandled IOErrorEvent:. text=Error #2124: Loaded file is an unknown type.

my xml is this:

<?xml version="1.0" encoding="ISO-8859-1"?>
<stats>
    <char>Mirrodir</char>
    <level>22</level>
    <race>Elf</race>
    <Cclass>Warden</Cclass>
    <nationality>Rivendell</nationality>
    <kinship>Nalopa 'nBarim 'nAdun</kinship>
    <serv>Elendilmir</serv>
    <morale>1,148/1,148</morale>
    <power>582/582</power>
    <armor>723</armor>
    <pic>image.jpeg</pic>
</stats>

And my AS3 is this:

stop();
var xmlLoader:URLLoader = new URLLoader();
var xmlData:XML = new XML();

xmlLoader.addEventListener(Event.COMPLETE, LoadXML);
xmlLoader.load(new URLRequest("stats.xml"));

function LoadXML(e:Event):void {
    //xmlData.ignoreWhite  = true;
    xmlData = new XML(e.target.data);
    ParseBooks(xmlData);
}

function ParseBooks(Stats:XML):void {
    //Var Data
    var Char:XMLList = Stats.char;
    var Lvl:XMLList = Stats.level;
    var Race:XMLList = Stats.race;
    var Cl:XMLList = Stats.Cclass;
    var Nat:XMLList = Stats.nationality;
    var Kin:XMLList = Stats.kinship;
    
    //image loading
    var loader:Loader = new Loader();
    var picReq:URLRequest = new URLRequest(Stats.pic);
    imageArea.addChild(loader);
    loader.load(picReq);

    //Dispaly Data
    char.text=Char;
    lvl.text=Lvl;
    race.text=Race;
    c1.text=Cl;
    nat.text=Nat;
    kin.text=Kin;
}

any ideas?

I also added my files.

Stats.zip