Ahh... It was obvious and I missed it:
<Orbit> parameters all need to be on one line separated by semicolons (

.
<Orbit>body=Earth ; apogee=358 km ; perigee=349 km ; e=0.0008892 ; i=51.6405 ; node=179.1416 ; peri=50.8416 ; m=309.3534 </Orbit>
Check out Satellites orbiting Earth.xml for a working example.
And from the Sandbox Log.txt file:
"The 'Action' start tag on line 17 does not match the end tag of 'Body'. Line 18, position 5."
(Add a closing </Action> tag.
It should work once you make those changes.