Kizzie,
it's great to hear that you've succeeded with utl_file - well done.
If you like, post your code and Dima can provide erudite comment, me I'll just look on and pretend I know what I'm talking about.
However, you must point out to your users that their requirements are unreasonable. If they really need such huge XML objects, then I humbly suggest that they haven't divided things down into enough strongly typed items. No matter how big a task is, it can always be divided down in the end.
Could you point out to the users that by exceeding the limits of the standard tools, they will incur enormous cost and reduce the reliability of code. As I understand XML, the whole point of a DTD is to avoid vast chunks of text, it's all broken down into pre-determined values etc.
I believe that this is not a technical issue, but a failure to make those setting the requirements really think about what they're saying.
Sorry to be such a purist, but I think you may be accepting too much hassle from your users.
Regards
Tharg
Grinding away at things Oracular