I was always under the impression that an XML file was a file that was pretty much indented and with well placed cr_fl's. The XML sample you provided was also in one straight string but the XSL sample was in a layout. So I was thinking of the RSS feed URL's which pointed to a well formatted file so is this file an XML or XSL?

Whether or not the text is formatted with carriage returns and line feeds has nothing to do with whether the file is an xml file. If you view the file in Internet Explorer, it will be nicely formatted (whether or not the text has embedded carriage returns and line feeds).

XSL is an XML based language designed to transform an XML document into another XML document or into some other text format such as HTML.