I was still getting the error even though I changed the HTTPService url back to src/pods.xml.
Error #2148: SWF file cannot access local resource data/pods.xml. Only local-with-filesystem and trusted local SWF files may access local resources. I fixed this by adding my Flex Builder 3 folder to the flash security trusted locations. This was working yesterday so I'm not sure why I had to do that. Thanks for the help.
