I need to add reference to \'System.XML.dll\' assembly into web.config (in order to try solution for problem, mentioned here: Problem with Extension method: IXmlLineInfo).
If you are using Visual Studio, then you can do it by Right clicking your Project-> Add Reference->Under .NET tab you will find that assembly.
How to add assembly reference via VS.
Depending on the type of project i.e WebSite or WebApplication VS will either add an entry to web.config or add the dll to your bin folder.
Now which one you need(2.0/3.5/4.0) depends on your application.
Try 'gacutil /l', and make sure you put in your web.config the one you really want to reference, depending on the target .NET release (e.g., 3.5, 4.0, etc). (In code terms, make sure you can load the assembly through Assembly.Load().)