Image in text filed Error #2144: Loaded file is an unknown type

Hi everyone. I’m new to the forum. I’ve been trying to format a text field using html in an xml file. So far it’s been working fine but I tried to load an image to the text field and I got this error:

Error #2044: Unhandled IOErrorEvent:. text=Error #2124: Loaded file is an unknown type.

I figured I had my image in the wrong format (it was a jpg) so I tried png and gif with no results. Here’s my xml file

<?xml version="1.0" encoding="ISO-8859-1"?>
<xml>
<blog> 
<font size ="12">
This is my blog.</font><img src= 'http://www.ojcruz.110mb.com/CrouchingCitySmall.jpg' width='400' height='229'/> 
</blog>
</xml>

I have this on frame 1 of my .fla:

include "blog.as";

and I have this .as file:

var xmlLength2:Number = new Number();
var xmlPath2:String ="blog.xml";
var currentText:String = new String ();

function onXMLLoad2(event:Event):void { 
    var xml:XML = new XML(event.target.data); 
	xmlLength2 = (xml.blog.length());
	currentText = (xml.blog[currentIndex]);
} 
var loader2:URLLoader = new URLLoader(); 
var url2:URLRequest = new URLRequest(xmlPath2); 
loader2.addEventListener(Event.COMPLETE, onXMLLoad2); 
loader2.load(url2); 

Any help will be greatly appreciated.