Hi,
I have tried all the things that you have specified. Still the xml file is showing all the values but when it comes to Infopath, it is not working. Only the first node value is displayed. I tried by storing the value in repeating field and then accessing it through the dropdownlist, but unfortunately it is not working. I tried to save the local copy of that xml file and it is working fine.
So what should I do now and I am not able to attach the .xsn file as there is no provision for attaching any file in this. Could you please send me your e-mail ID so that I can send you the .xsn file