man it's good. you have to do the includewhitespace thing to it... let me find it again...
WHATEVERYOURFILE.ignoreWhite = true
also try this...
Now is a good time to talk about ignoreWhite and also the condenseWhite property which I alluded to earlier.
ignoreWhite excludes all white-space (linebreaks, carriage-returns, non-breaking spaces) from our XML when it is brought in to Flash (ie parsed). However, it is only the white-space inbetween the nodes, and nodes that contain nothing but white-space that are ignored. Any white-space within a text node, including leading or trailing whitespace, is preserved. You can see this for yourself by opening up the kungfu.xml file, and inserting a carriage-return (ie press the enter/return key) directly after an opening tag such as <snake>. Now save your ammended XML file and test the fla. When you test it you can see that the whitespace is included.
There is however a solution to this potential formatting problem. You can use condenseWhite to get rid of that unwanted whitespace within the node. For a TextField use: TextField_Instance.condenseWhite=true; and for a TextArea use: TextArea_Instance.label.condenseWhite=true;.
Many thanks to Christopher Watts and Rob Verhoef for the info and solution here =)
this is taken from here
enjoy. but try the condenseWhite=true first.