I have found the answer to my problem. There is nothing incorrect in the code.
I had to read this documentation:http://unity3d.com/support/documentation/Manual/Security%20Sandbox.html All I needed to include was the crossdomain.xml document in my server root directory, and all works well.
I would have figured this out a long time ago, but when I initially looked into the "no crossdomain.xml policy exists" error, someone said to simply ignore it as it was not important.
