Well that doesn't seem to be important here... But you have several other problems.
First one is no pictures in a text file! If you want to display pictures you'll have to use a scrollpane.
Second your synxtax is quite "sloppy", if you'll permit me to say so!
Once again you have left an incorrect variable name...
You've left var1 in there
This should be your script:
loadVarsText = new loadVars();
loadVarsText.load("news.txt"

;
loadVarsText.onLoad = function (success){
if (success){
//trace ("Done loading!"

;
news.html = true;
news.htmlText = this.news_txt;
}else{
//trace ("Not loaded!"

;
}
};
Next, allways start this with a standard font not BOLD, with the selectable tab (Ab) unchecked. When the text appears, you can then start playing around with features.
Try it out with the "Verdana" font with Bold (B) unchecked, and the corrected script above, to see it the text now appears.
Won't go into scrollpane stuff, until you get this simple text going. It's 20 times as complicated. Regards,