Can SilkTest execute a data driven testcase using data stored in XML format?
No. SilkTest relies on a Windows ODBC driver to interrogate and retrieve data from a database. There is currently no ODBC driver available to use with XML.
One possible workaround would be to extract the data from the XML using one of a number of processing APIs available for this purpose and store it in either a database or comma-delimited file. It can then be manipulated from within SilkTest using the appropriate ODBC driver and called as input to a data driven testcase.