Both methods result in the following error: "Make sure you have a cross domain policy file available at the root for your server that allows for requests from this application."
I've added the website too my cross domain file but it does not resolve the issue. Any other thoughts?
The cross domain policy file must be on the server providing the map service (not on your server), so in your case in 'http://gis.apfo.usda.gov'. If the map server has no cross domain file, you can use a proxy server and set the ProxyUrl property of your layer.