XML gallery not working

Hi there,

I'm trying to set up a simple XML gallery but I get the following error when testing the gallery:
Error #2044: Unhandled IOErrorEvent:. text=Error #2035: URL Not Found.

AS=
var xmlRequest:URLRequest = new URLRequest("imageData.xml");
var xmlLoader:URLLoader = new URLLoader(xmlRequest);
var imgData:XML;
var imageLoader:Loader;
var rawImage:String;

var imgNum:Number = 0;

xmlLoader.addEventListener(Event.COMPLETE, xmlLoadedF);

function xmlLoadedF(event:Event):void{
imgData = new XML(event.target.data);
trace(imgData);
rawImage = imgData.image[imgNum].imgURL;
imageLoader = new Loader;
imageLoader.load(new URLRequest(rawImage));
master_mc.addChild(imageLoader);
}

The trace shows that the XML file is picked up and all is in the same folder.
Don't know what I'm doing wrong? What URL can't be found?

Any help would be appreciated!
Thanks