New line for XML only works inside of a tag

If I put the new line “&# 10;” (i know the space is incorrect, needed in this post) inside of a XML node it works fine, outside of all XML nodes it will not work. I would rather not mess around with HTML stuff if possible.
So in the example below the green works, the red does not work.

Any help would be greatly appreciated.

var xmlStuff:XML = 

		<startSlide>{txtFirstSlide.text}</startSlide>[COLOR="green"]&# 10;[/COLOR]
    </entireScenario>[COLOR="#8b0000"]&# 10;[/COLOR];