This option allows you to export all of your Groove IM message, including attachments, in a file format called XML. You may not view this file directly in very intelligible way but it is useful if you have any other programs which can process XML files in this format..
This option is primarily meant for software developers who have skills for working with this file format and who want to easily create add-on programs to process Groove IMs in some useful way without dealing with complex Groove APIs to retrieve IM information. For example, using exported XML files, it's pretty easy to create a program that would plot statistics of your communications with different people in your Groove contact list.
Note that XML format always exports complete information about your IM messages.
You will be provided an option to choose whether to export IM attachments. If you choose yes, all your IM attachments are saved inside same XML file as a node of type xs:base64Binary.
The XML file is directly loadable in to ADO.Net DataSet provided in Microsoft .Net Framework. You can, however, also choose to use XML DOM if you are working with non-Microsoft development tools. If you do you DataSet, you will find that there are two tables available, one with message information and other with related attachment information. The message body is stored as RTF string as well as plain Text.