This is a basic example of how to load an XML file into Flash MX, recurse it and represent the tree using duplicated dynamic movie clips. It doesn't do much but the code is stripped to the bare essentials to make it easier to re-use and learn from.
The full source is here:
xmltoflash1.fla [Flash Source]
xmltoflash1.as [Action Script as Text]
mg1.xml [XML File used]