You can use SQL 2005 HTTP Endpoints (although they are deprecated effective
with 2008). Project Astoria (ADO.NET Data Services) looks like a potential
replacement for both HTTP Endpoints and SQLXML, although last time I checked
it was still in Beta. Alternatively you can use ASP.NET and create either a
web service or a web page that returns your XML directly over HTTP (as is
common with AJAX-style applications). I think the general idea is that MS
tried implementing HTTP Endpoints directly from SQL Server but then decided
against it. Now the move is toward keeping the HTTP communication in the
middle-tier, away from SQL Server itself.

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