You should use XSLT for this job. XSLT is a language that is designed to transform documents from xml to xml. This is very usefull, because xhtml is an xml language. That means that you can convert xml to xhtml using XSLT.
XSLT can be used both serverside and clientside, but beware of the clientside solution. Some browers does not support it, and some only supports older versions wihch might lead to different results.
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