To use xml file as a datasource.
1>first create the xml file.
2>Drag and drop XMLDataSource Control to the page from the Toolbox's Data tab.
3>Specify the DataFile property to the Xml file.
4>Now you can use navigation controls like Treeview , Menu control for displaying xml contents.
5>Set DataSourceID property of navigation control to xmldatasource name.
like DataSourceID="XmlDataSource1"