Formatting xml

<xml><tag1><tag2/></tag1></xml>

If this is the XML file in Visual Studio 2005, you can use the Edit->Advanced->Format Document (Ctrl-K Ctrl-D) to change it to

<xml>
      <tag1>
              <tag2/>
      </tag1>
</xml>

Note this menu command as well as it's Format Selection (Ctrl-K, Ctrl-F) partner are really handy when you change some sort of formatting option in Tools->Options (like changing tabs to spaces or how you prefer to do new lines after your braces.)