Ah, I finally figured it out.
I guess I just needed a fresh set of eyes, the doing code the next morning always helps me see the problem. I guess I get a little frustrated.
So the solution was to turn off the initial output and let the answer come out of the code that ahmad_511 wrote

I also added a "$" to the begining of the data.
So here it is and works great!!!
CODE
var newsXML:XML = new XML();
newsXML.ignoreWhite = true;
var output:String = "";
newsXML.onLoad = function(success) {
if (success) {
var news:Array = newsXML.firstChild.childNodes;
output = news[0].childNodes[0].nodeValue;
trace(output);
//badText.text = output;
var count = 0;
var temp = "";
var fix = output.toString().split(".");
for (var i:Number = fix[0].length-1; i>=0; i--) {
count++;
temp = fix[0].charAt(i)+temp;
if ((count%3 == 0) && (i-1>=0)) {
temp = ","+temp;
}
}
badText.text = "$"+temp+"."+fix[1]; // This is what gives you the excellent data
//trace(badText);
} else {
trace("XML file did not Load");
}
};
newsXML.load("http://feeds2.oddsmaker.com/jackpots.xml");
Thanks a bunch ahmad_511,
Bmcc81