I think this is a great question. A lot of people hear about how wonderful XML is, then they ask "But what can it do for me?"
The truth is, if you have a working system that meets all of your immediate needs, converting to XML will probably not help you at all. Fortunately for us development types, those pesky users always seem to want more functionality.
Moving to an XML-based infrastructure actually provides your system with a LOT of flexibility. For example, if all of the content from your web site is available through a series of XML documents, you could easily take the same content and generate printable (PDF), cell-phone (WML) or plain-text versions with very little effort. Right now, XML is still primarily a presentation format, not a data-update format.
As for the techniques to use, you can still use a lot of the same tools you used before. But instead of generating HTML documents, generate XML documents and transform them.
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W. Scott Means author,
Strategic XML smeans@strategicxml.com