Loading dynamic text into Flash MX (help)

Hello, does any ont know which HTML tags are acceptable when trying to load data into Flash from an external .txt file? This is the code I have used in Flash:

loadText = new loadVars();
loadText.onLoad = function(success) {
if (success) {
// trace(success);
merch.html = true;
merch.htmlText = this.merch;

It loads text okay, but I am trying to load images too. I am just using the standard HTML imgae tag: <img src=“image.jpg”> but is not loading the image.

Does anyone know how to make this work correctly?