This should be simple in InfoPath once you get used to it.
Verify that your sample XML here is available in your form's data source.
The drop down should be bound to a field in your main repeating section, typically where name will be stored in your record.
Then double click the drop down and in the lower half is list box entries.
select look up values from an external data source and pick the data connection to your sample xml above
Then browse it to select the name field.
Preview and you will find that your dropdown has the values from the names in your xml and when selected they are stored in the bound field in your repeating section.
For the next "cascading" dropdown you would have the same procedure but when picking the dbinstance in the drop down properties add a filter where name = the field your first dropdown is bound to.