I contacted Curious Labs' tech support about this error. They stated that one reason the XML parse errors occur is if you have a library containing one of the following in the name: quote (") apostrophe (') ampersand (&) less than (<) greater than (>) and possibly... back slash () and slash (/). Their recommended workaround is to 1. Open the LibraryPrefs.xml file in notepad, remove the offending character from the fodler name, is, SM and save out the change. 2. Go to(sic) the Runtime>Libraries>Character folder and remove the offending character from the folder named there too. I sent an e-mail to PFWF (Poser World/Fairy World) regarding this matter since their file names for new stuff usual start with an odd character. Wonder how long it will take for the first Poser 5 patch file?