in reply to XMLin error while parsing
I'm getting this same error this morning. I haven't looked into it too far yet, but I can give this experience: the particular xml file I'm working with has some lines (outside of the entities it is complaining about, and not in CDATA hunks) containing only whitespace. If I remove the whitespace on those lines, it parses just fine.
It looks like it may be something in my CDATA blocks that is confusing it...
UPDATE: Upgrading my XML related modules seems to have solved this problem.