I am hooking up to some remote web service which I'd would rather call with ajax and also the service (FedEx Services API) does not seem to support JSON formatted reactions.

It is possible to proxy server/apache which will convert the response from XML/Cleaning soap into JSON so my Javascript can certainly utilize it?

Which means you are searching to visit from XML to JSON?

Well I don't know what good this could would you when the proxy is this is not on your server because of exactly the same origin policy.

Anyway, here's a good example of xml-to-json from http://jsonproxy.appspot.com/ of W3C's note.xml

Jsonproxy.appspot.com only converts the very first node of the collection, so that you can loose the majority of the data within the XML, try http://networkprogramming.wordpress.com/2011/07/19/a-better-xml-to-json-proxy/ as a substitute