Uploading file and then getting echo response problem

I’m trying to upload an image file to another server and load the image into my flash application. I’ve modified crossdomain.xml as to allow the php to do the uploading to the other server.

var fileRef:FileReference = new FileReference();
fileRef.addEventListener(Event.SELECT, selectHandler);
fileRef.addEventListener(Event.COMPLETE, completeHandlerN);
//fileRef.addEventListener(DataEvent.UPLOAD_COMPLETE_DATA, completeHandlerN);

uploadBtn.addEventListener(MouseEvent.MOUSE_DOWN, upload);

function upload(event:Event):void
{
	try
	{
		var success:Boolean = fileRef.browse();
	}
	catch (error:Error)
	{
		trace("Unable to browse for files.");
	}
}
function selectHandler(event:Event):void
{
	var urlRequest:URLRequest = new URLRequest("proxy.php?");
	
	var urlParams:URLVariables = new URLVariables();
	urlParams.proxyaction = "assign";
	
	urlRequest.method = URLRequestMethod.GET;
	urlRequest.data = urlParams;
	
	var loader:URLLoader = new URLLoader();
	loader.addEventListener(Event.COMPLETE, serverResponse);
	loader.load(urlRequest);

}
function serverResponse(e:Event):void {
	var loader:URLLoader = URLLoader(e.target);
	var variables:URLVariables = new URLVariables(loader.data);
	txtServer.text = variables.q;	//getServer Num
	//serverNum = variables.q; 		// UNCOMMENT WHEN SERVER 4 IS ALSO IMPLEMENTED
	registerAndUpload();
}

function registerAndUpload()
{
	filename = fileRef.name;
	txtOutput.text = filename;
    var request:URLRequest = new URLRequest("otherserver.com/upload.php");
    try
    {
        fileRef.upload(request);
    }
    catch (error:Error)
    {
        trace("Unable to upload file.");
    }
}


function completeHandlerN(evt:Event):void
{
    trace("uploaded");
	imgBefore.source =  "otherserver.com/files/" + filename;
	txtOutput.text = "File uploaded";
	txtOutput.text = "*";	//get Registerd ID Num	
	txtOutput.appendText(evt.target.data.q+"*");
	txtOutput.appendText("after");
}
	

The problem is this: I am ABLE to upload the image to the other server - it is present there, and LOAD it onto the flash movie using

	imgBefore.source =  "otherserver.com/files/" + filename;

However I cannot access the echo back data. Meaning

	txtOutput.appendText(evt.target.data.q+"*");

does not do anything.

In the php file I do the upload first:

if(!is_dir("./files")) mkdir("./files", 0777); 
//move the uploaded file
move_uploaded_file($_FILES['Filedata']['tmp_name'], "./files/".$_FILES['Filedata']['name']);
chmod("./files/".$_FILES['Filedata']['name'], 0777);
$q='test';
$returnVars['q'] = $q;
$returnString = http_build_query($returnVars);
echo $returnString;

I never get the echo back. Any suggestions. The echo should be executed as I’m waiting on Event.Complete!

Any suggestions