Working with Javascript and images in AIR's HTML component

Question

I'm having the following problems using Javascript and img tags in the standard HTML component in AIR:

1- Javascript in the xml literal causes problems (even though it shows using them here: http://livedocs.adobe.com/flex/3/html/ProgrammingHTMLAndJavaScript_07.html#1032824

2- Using html.loadString(...<img src="/tmp/me.jpg" />...) does not show the image.

3- After wrapping the Javascript in CDATA tags it is still not accessible and returns an 'invalid function' error when trying to reach it.

The second 2 issues seem to go away if I save the html to a file and load it with html.load(file) instead of trying to read it as a string. Any suggestions to solve these issues?