AJAX issue

AJAX issue

Hi
 
I am making an AJAX call which serves XML in response and on call back success I am handling that. Following is the code for that
 
=====
$.ajax
                        (
                            {
                               
                                url: 'http://localhost:3591/ASPX site/Default.aspx?q=S',
                                type: 'GET',
                                dataType: 'xml',
                                timeout: 1000,
                                error: function()
                                {
                                    alert('Error loading XML document');
                                },
                                 success: function(xml)
                                {
                                    $(xml).find('item')
                                    .each
                                    (
                                        function()
                                        {
                                            var suggid = "#suggesteditem"+i.toString();
                                            $(suggid).html($(this).text());
                                            ++i;
                                        }
                                    );
                                }
                            }
                        );

























 
===
I checked this URL directly and it serves correct XML as shown below
====
  xml version="1.0" encoding="utf-8" ?>
- < Suggestions >
  < item > Sandeep item >
  < item > Sanjay item >
  < item > Sangeeta item >
  < item > Sankalp item >
  < item > Sanjana item >
  Suggestions >
===
 
but my AJAX call is failing and I see error alert instead. 
 
I copied this XML to a file "test.xml" and gave that file as URL and that works fine. Can sombody guide me that is mistake I am makign here?
 
Thanks
Sherebyah