At work we are being asked to create XML files to pass data to another offline application that will then create a second XML file to pass back in order to update some of ou
It's largely a matter of preference. I use Elements for grouping and attributes for data where possible as I see this as more compact than the alternative.
For example I prefer.....
...Instead of....
Rory
Becker
30
Travis
Illig
32
Scott
Hanselman
34
However if I have data which does not represent easily inside of say 20-30 characters or contains many quotes or other characters that need escaping then I'd say it's time to break out the elements... possibly with CData blocks.
A programmer whose interested in all sorts of misc stuff. His Blog can be found at http://rorybecker.blogspot.com and he's on twitter as @RoryBecker
A cool guy for who has helped me out with all sorts of SVn information
Scott works for MS and has a great podcast available at http://www.hanselminutes.com