made it simpler...and working

.gitignore

@@ -1,4 +1,4 @@
 *~
 *.n
 *.swf
-
+.DS_Store

HubbleSiteDailyImageChumby.hx

@@ -1,17 +1,90 @@
+import flash.MovieClip;
+
 class HubbleSiteDailyImageChumby {
+  private static var imageHolder:MovieClip;
+  private static var logoHolder:MovieClip;
+  private static var myClip:MovieClip;
+  private static var logoWidth:Int = 280;
+  
 	static public function main() {
-		var xml:Xml = Xml.createElement("gallery");
-		var myClip:flash.MovieClip = flash.Lib.current;
-
-		var t:flash.TextField = myClip.createTextField("test", 1, 0, 0, 200, 200);
-
-		flash.XMLRequest.load('http://hubblesite.org/gallery/album/daily_image.php',
-													xml,
-													onData
-											    );
+	  var initialized:Bool = false;
+	 
+		myClip = flash.Lib.current;
+		
+		myClip.onEnterFrame = function() {
+		  initialized = true;
+		  myClip.onEnterFrame = function():Void {};
+		  loadLogo();
+		}
+  }
+  
+  public static function loadImage() {
+    imageHolder = myClip.createEmptyMovieClip("imageholder", myClip.getNextHighestDepth());
+
+    var loadVars = new flash.LoadVars();
+    loadVars.onData = function(s:String) {
+      var xmlfast = new haxe.xml.Fast(Xml.parse(s).firstElement());
+      
+      var loader:flash.MovieClipLoader = new flash.MovieClipLoader();
+      loader.onLoadComplete = function(target:MovieClip) {
+        target.onEnterFrame = function() {
+          target._alpha = 0;
+          if (target._width > target._height) {
+            var newHeight:Float = (target._height * flash.Stage.width) / target._width;
+            target._width = flash.Stage.width;
+            target._y = (flash.Stage.height - newHeight) / 2;
+            target._height = newHeight;
+          } else {
+            var newWidth:Float = (target._width * flash.Stage.height) / target._height;
+            target._height = flash.Stage.height;
+            target._x = (flash.Stage.width - newWidth) / 2;
+            target._width = newWidth;
+          }
+          target.onEnterFrame = function() {};
+          
+          fadeIn(target, function(){});
+        }
+      }
+      loader.loadClip(xmlfast.node.image_url.innerHTML, imageHolder);
+    }
+    loadVars.load('http://hubblesite.org/gallery/album/daily_image.php');		   
+  }
+  
+  public static function loadLogo() {
+    logoHolder = myClip.createEmptyMovieClip("logoholder", myClip.getNextHighestDepth());
+    
+    var loader:flash.MovieClipLoader = new flash.MovieClipLoader();
+    loader.onLoadComplete = function(target:MovieClip) {
+      target.onEnterFrame = function() {
+        target.onEnterFrame = function() {};
+        
+        var newHeight:Float = (target._height * logoWidth) / target._width;
+        target._width = logoWidth;
+        target._x =  (flash.Stage.width - logoWidth) / 2;
+        target._y = (flash.Stage.height - newHeight) / 2;
+        target._height = newHeight;
+        
+        fadeIn(target, function() {
+          var t:haxe.Timer = new haxe.Timer(1500);
+          t.run = function() {
+            t.stop();
+            loadImage();
+          }
+        });
+      } 
+    }
+    loader.loadClip("http://hubblesite.org/gallery/graphics/gallery_nav_logo.gif", logoHolder);
+  }
+  
+  public static function fadeIn(target:MovieClip, c:Void->Void) {
+    var timer:haxe.Timer = new haxe.Timer(40);
+    target._alpha = 0;
+    timer.run = function() {
+      target._alpha += 10;
+      if (target._alpha >= 100) {
+        timer.stop();
+        c();
+      } 
+    }    
   }
-	
-	static private function onData(data : Null<String>):Void {
-		trace("made it here");
-	}
 }

Makefile

@@ -1,6 +0,0 @@
-test: force_look
-	haxe test.hxml && neko HubbleSiteDailyImageChumbyTestRunner.n
-	rm HubbleSiteDailyImageChumbyTestRunner.n
-
-force_look:
-	true

classes/XMLReader.hx

@@ -1,5 +0,0 @@
-class XMLReader {
-	public function new() {
-	
-	}
-}

swf.hxml

@@ -0,0 +1,5 @@
+-main HubbleSiteDailyImageChumby
+-swf chumby.swf
+-D network-sandbox
+-sef-version 7
+-swf-header 320:240:12:000000

test.hxml

@@ -1,4 +0,0 @@
--main HubbleSiteDailyImageChumbyTestRunner
--neko HubbleSiteDailyImageChumbyTestRunner.n
--cp classes
--cp test

test/HubbleSiteDailyImageChumbyTestRunner.hx

@@ -1,7 +0,0 @@
-class HubbleSiteDailyImageChumbyTestRunner {
-  static function main() {
-    var r = new haxe.unit.TestRunner();
-		r.add(new RemoteXMLReaderTest());
-    r.run();
-  }
-}

test/RemoteXMLReaderTest.hx

@@ -1,11 +0,0 @@
-class RemoteXMLReaderTest extends haxe.unit.TestCase {
-	private var xr : XMLReader;
-
-	override function setup() {
-		this.xr = new XMLReader();
-	}
-
-	function testParseXML() {
-		assertTrue(true);
-	}
-}