C# 3.0 developers will not have XML literals. This is a good thing IMO, but leaves you with only programmatic creation of XML, which is not ideal for maintainability and readability.
XML Typed Templates bridge the gap for C# developers, by leveraging the XML editor for full intellisense, but at the same time using design-time code generation to create XML "rendering" classes to process and generate that same XML in a streaming fashion.
Install the project and take a look at the included sample project. The crucial piece is the association of the Mvp.Xml.TypedTemplate custom tool in VS with an XML file that contains additional processing instructions for code generation.
See the discussion thread
for more information.