You can only use loadVariables() in Flash Lite 1.1. Support for XML was 
added in Flash Lite 2.0. Neither does Flash Lite in general support 
Flash Remoting. You could consider using SWX made by Aral Balkan.
See: www.aralbalkan.com.

And of course it is pull only.. no pushing of content. You could do that 
in FL2.1+ using XMLSockets.

Yours,
Weyert de Boer

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