>My Web Service always returns data in XML string. From the client side, this requires the client to manipulate that XML string in order to get the data in the way it is desired. From VFP, this can be accomplished by using XMLTOCURSOR(). But, outside of that environment, the client would have to DOM into the XML string and get the piece of data that is required for the display or any other kind of needs.
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>Knowing that the Web Service is done in .NET and that the client who would access some specific methods would also be .NET, would that be the best way to simply return a DataSet?
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>I would like some feedback on both approaches in regards to the pros and cons.

If the client is .NET, you can return a DataSet without doing anything special. Datasets are serializable out of the box.