The Xml output from the 2.0B7 version of emplode is well formed XML.
You can display it properly in IE 5+ - always a good initial test of a XML document for well-formed-ness.

The node structure is basically as follows:
[I've used square brackets for angle brackets in this post]

[nodestore player_name="name of my empeg"]

  [playlist fid="xxx"]

    [children]

        [child]nnn[/child]

    [/children]

     ...

    ]/playlist]

    ...

  [tune fid="yyy"]

      ...

  [/tune]

  ...

[/nodestore]

so the XML is using attributes as well as elements [perfectly ok in XML].

Playlists appear first, especially the 2 'reserved' playlist of all playlists and of unattached items.
Then the tune nodes for the playlists then the next playlist node etc.
Note: A tune can be in more than playlist thats why tunes are not nested under the playlist node. But instead a reference to the tunes FID is nested under the playlist. The Tune proper is output following the first playlist where it is referenced.
However the children node contains a list of child nodes with the fid for each tune in the playlist, so you can create a tree with tune information nested under the playlist if desired.