Hey dan_nl, You were right to point me in the direction of the content type. Turns out I wasn't setting the content type of the http response to text/xml, so jQuery was interpreting my response as html. A lot of other things were working, but since CDATA isn't valid in html, jQuery was probably thinking there was an error in the html and silently ignoring it.
Anyway, thanks, and thanks Jay for responding too. Russ