Without starting a new holy war, the sentiments of the 'angle bracket tax' post is one area where I majorly disagree with Jeff. There's nothing wrong with XML, it's reasonably human readable (as much as YAML or JSON or INI files are) but remember its intent is to be read by machines. Most language/framework combos come with an XML parser of some sort for free which makes XML a pretty good choice.
Also, if you're using a good IDE like Visual Studio, and if the XML comes with a schema, you can give the schema to VS and magically you get intellisense (you can get one for NHibernate for example).
Ulimately you need to think about how often you're going to be touching these files once in production, probably not that often.
This still says it all for me about XML and why it's still a valid choice for config files (from Tim Bray):
"If you want to provide general-purpose data that the receiver might want to do unforeseen weird and crazy things with, or if you want to be really paranoid and picky about i18n, or if what you’re sending is more like a document than a struct, or if the order of the data matters, or if the data is potentially long-lived (as in, more than seconds) XML is the way to go.
It also seems to me that the combination of XML and XPath hits a sweet spot for data formats that need to be extensible; that is to say, it’s pretty easy to write XML-processing code that won’t fail in the presence of changes to the message format that don’t touch the piece you care about."
