Why can't you LoadCharacter() from a LocalScript. Does it have to be coded in a Script?
COMMUNITY QUESTION
Why can't you load your character from a localscript?
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I'm guessing because it is too dangerous; A(n) Exploiter (or the creator) could set up a LocalScript to repeatedly load a Player's Character non-stop each (Re-)spawn by placing it within the StarterGui or StarterGear services.
If you look at the wiki page here: http://wiki.roblox.com/index.php?title=API:Class/Player/LoadCharacter It says that you should use a script to make it work as expected online. The reason for this could be the one that TheAlphaStigma suggested.
You can always use a RemoteFunction to call it, if you REALLY need to use it.