0. load app over HTTPS
1. execute query to https URL that returns response encoded text/xml.
    <button text="make wonky call">
        <handler name="onclick"><![CDATA[
            var url="https://192.168.0.133:8443/webtop/dd?clientId=1207777501640&locale=&__lzbc__=1207777521937";
            canvas.getData(url);
        ]]></handler>
    </button>

    <method name="getData" args="src">
        ds.setAttribute("src", src);
        ds.doRequest();
    </method>

    <dataset name="ds" id="ds" />
    <handler name="ondata" reference="ds">
        Debug.warn("%w ondata %w", ds, ds.data);
    </handler>

2. wait for dataset ondata event to fire.

RESULTS:
observe error in debugger in IE. It works fine in Firefox.[1]
ondata does not fire. <--- this is the real problem. The debugger error is just a related indicator of the problem.
[2] is a dump of HTTP that triggers the warning.

[1]
WARNING: LzLoadQueue.XMLOnDataHandler load failed from URL 'https://192.168.0.133:8443/webtop/dd?clientId=1207777501640&locale=&__lzbc__=1207777521937', no data received.
WARNING: Failure to load data in serverless apps may be caused by Flash player security policies. Check your data server crossdomain.xml file

[2]
GET /webtop/dd?%5F%5Flzbc%5F%5F=1207777521937&null=&locale=&clientId=1207777501640 HTTP/1.1
Accept: */*
Referer: https://192.168.0.133:8443/pagan-deities/diamond/client/future/HTTPS/BAD-HTTPS.lzx?lzt=swf&debug=true&lzr=swf8
x-flash-version: 9,0,47,0
UA-CPU: x86
Accept-Encoding: gzip, deflate
User-Agent: Mozilla/4.0 (compatible; MSIE 7.0; Windows NT 5.1; .NET CLR 1.1.4322; .NET CLR 2.0.50727)
Host: 192.168.0.133:8443
Connection: Keep-Alive


HTTP/1.1 200 OK
Cache-Control: private,no-cache,no-store
Content-Type: text/xml;charset=UTF-8
Content-Length: 54
Date: Wed, 09 Apr 2008 23:44:43 GMT
Server: Apache-Coyote/1.1

<error code="badrequest">malformed request xml</error>