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PowerShell supports XML as a native data type. To create an XML variable, cast a string to the [xml] type:
$myXml = [xml] @" <AddressBook> <Person contactType="Personal"> <Name>Lee</Name> <Phone type="home">555-1212</Phone> <Phone type="work">555-1213</Phone> </Person> <Person contactType="Business"> <Name>Ariel</Name> <Phone>555-1234</Phone> </Person> </AddressBook> "@