I'v never worked with xmlSocket, but maybe something like this would work

loop the image pixels and send them using bytearray. And on client2 you loop the bytes and draw the image. I think it will be alot of data sent though, even if its probably less then sending 120000 variables, maybe convert the bitmapdata to a jpg and send that as a bytearray.

If you cant send a bytearray using xmlSocket you could convert it to base64 and send that.