Erika Ehrli shows us how easy it is to generate nicely indented xml files:

 For managed applications:

• If you are generating XML files using and XmlTextWriter, you just need to do the following:
  
  
  [VB.NET]
  Dim writer as XmlTextWriter = new XmlTextWriter("data.xml",nothing)
  writer.Formatting = Formatting.Indented
  
  [C#]
  XmlTextWriter writer = new XmlTextWriter("data.xml",null);
  writer.Formatting = Formatting.Indented;