[Baertram]

No, it's the item's itemLink then, and not only the name of the item.
To get the item's name from that link use the function here:

* GetItemLinkName(*string* _itemLink_)
** _Returns:_ *string* _itemName_

Use it like this then:

btw: Is it correct that your variable "bFound" is a global one?
If you use global variables please create one global array for your addon's namespace like this

myAddonName = {}

and add your addon's variables to it then. Otherwise you might get in trouble if any other addon uses "bFound" too!

myAddonName.bFound = false

RegisterForEvent(EVENT_LOOT_RECEIVED, XL.OnItemLooted)  
 
        
function XL.OnItemLooted (numID, lootedBy, itemLinkStr, quantity, itemSound, lootType, self)
 
    myAddonName.bFound = false
 
        d (itemLinkStr)
        local itemName = GetItemLinkName(itemLinkStr)
 
    if itemName ~= nil and (string.find(itemName, "Needle") ~= nil) then myAddonName.bFound  = true
    end
 
    -- Do something here
end