I thought this might be due to using the inbuilt server rather than IIS so I installed IIS 5.0 on XP, which opened up a whole new can of worms because I can't get the website to run.
I am thrashing around in the dark with evil thoughts about reinstalling software!
Got it to work firstly by calming down : ) reading the rest of the chapter properly and creating the XML file in the directory on my hard drive pointed to by Request.ApplicationPath.
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