Although I still do not know XML and XQuery as well as I’d like, I’m learning.
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One of my favorite resources is Michael Rys blog. For example, the July 13 posting is exceptionally good and will point you to many other valuable resources (http://sqljunkies.com/WebLog/mrys/archive/2005/07/13/16044.aspx).
In addition to Michael’s blog, you should look at this white paper that introduces XQuery support in SQL Server 2005 (http://msdn.microsoft.com/library/default.asp?url=/library/en-us/dnsql90/html/sql2k5_xqueryintro.asp).
Let me know if this is of any value to you.