Hi Dheeman,
Thanks for your question.
You can run your flash application from any domain even from localhost of your pc. So you need to create/upload another xml file (crossdomain.xml) on your domain root directory or where is your xml file located. On crossdomain.xml paste following codes :
<?xml version="1.0"?>
<!DOCTYPE cross-domain-policy SYSTEM "http://www.macromedia.com/xml/dtds/cross-domain-policy.dtd">
<cross-domain-policy>
<allow-access-from domain="*" secure="true" />
</cross-domain-policy>
Now your flash application will get to xml read access from that domain.
Hope this topic will be helpful ...
If any problem don't hesitate to knock me.
Thanks