Although I haven't done much XML parsing in my day, I am positive that SAX parsers are better fitted to looping through extremely large XML files than DOM parsers. The reason being is that SAX parses the content line-by-line and is parsed using event-handler code, whereas DOM loads it all into memory at one go.
Although there seem to be a plethora of SAX related modules on CPAN, I would reccomend starting with one like XML-SAX.
"Falling in love with map, one block at a time."
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