Erika wrote a couple posts worth a look regarding Data driven document generation.

Data-driven document generation with Word 2007 and the Office XML File Formats: Part 1

Data-driven document generation with Word 2007 and the Office XML File Formats: Part 2

Also If you wanted to take a Mail Merge word doc and port it over to XML

Migrating Mail Merge Fields to Content Controls ( I republished the code so that its legible)

            Private
            Sub Document_Open() If (MsgBox("Convert
Mail Merge fields to Content Controls?", vbYesNo, "Convert
Mail Merge Fields") = vbYes) Then ConvertMailMergeFields EndIfEndSub'**
Traverse Mail Merge fields collection and convert each mail merge field into a content
control'** while preserving its font style and format.PrivateSub ConvertMailMergeFields() Dim i AsInteger,
Count AsIntegerDim currentFont As Font Dim mergeFieldname AsStringDim field As MailMergeField ForEach field In ActiveDocument.MailMerge.Fields '**
Select Mail Merge field to process. field.SelectSet currentFont
= Selection.Font '** Set name for content control. mergeFieldname
= GetMailMergeFieldName(field.Code) Debug.Print ("Processing [" &
mergeFieldname & "]") '** Remove Mail
Merge field and replace it with addition of new content control. Selection.Cut '**
Add new content control. AddContentControl mergeFieldname, currentFont Count
= Count + 1 Next Debug.Print ("Number
of Mail Merge Fields converted to Content Controls: " & Count) EndSub'**
Add new content control.PrivateSub AddContentControl(ByVal mergeFieldname AsString, ByVal currentFont As Font) Dim newControl As ContentControl Dim fontStyleName AsStringSet newControl
= ActiveDocument.ContentControls.Add(wdContentControlText) '** The
Title property only allows for 64 characters.'** If name
is longer, we will put the rest in the Tag property.If (Len(mergeFieldname)
< 64) Then newControl.Title = mergeFieldname newControl.Tag
= ""Else newControl.Title = Mid(mergeFieldname,
1, 64) newControl.Tag = Mid(mergeFieldname, 65, Len(mergeFieldname) - 64) EndIf newControl.SetPlaceholderText
, , "Click to add."'** Set font for content
control. fontStyleName = GetFontStyleName(currentFont) SetFontStyle newControl,
fontStyleName, currentFont '** Allow carriage return. newControl.MultiLine
= TrueEndSub'**
Quick and dirty way to check to see if the given font style exist; if it does not,
create it.PrivateSub SetFontStyle(ByRef newControl As ContentControl, ByVal fontStyleName AsString, ByVal currentFont As Font) OnErrorGoTo Error_FontStyleDoesNotExist
newControl.DefaultTextStyle = fontStyleName ExitSub Error_FontStyleDoesNotExist:
AddNewFontStyle fontStyleName, currentFont newControl.DefaultTextStyle = fontStyleName EndSubPrivateSub AddNewFontStyle(ByVal newFontStyleName AsString, ByVal currentFont As Font) Dim fontStyle As Style Set fontStyle
= ActiveDocument.Styles.Add(newFontStyleName) With currentFont
fontStyle.Font.Name = .Name fontStyle.Font.Size = .Size fontStyle.Font.Bold = .Bold
fontStyle.Font.Italic = .Italic EndWithEndSubPrivateFunction GetFontStyleName(ByVal currentFont As Font) AsStringDim fontStyleName AsStringWith currentFont
fontStyleName = .Name fontStyleName = fontStyleName & .Size fontStyleName = fontStyleName
& .Bold fontStyleName = fontStyleName & .Italic EndWith'**
Return result. GetFontStyleName = fontStyleName EndFunctionPrivateFunction GetMailMergeFieldName(ByVal fieldCode AsString) AsStringDim mergeFieldname AsString:
mergeFieldname = ""'** Name of Mail merge
field: MERGEFIELD MailMergeFieldName \* MERGEFORMAT mergeFieldname = Replace(fieldCode, "MERGEFIELD", "")
mergeFieldname = Replace(mergeFieldname, "\* MERGEFORMAT", "")
mergeFieldname = Trim(mergeFieldname) '** Return result. GetMailMergeFieldName
= mergeFieldname End Function

LINQ to XML

Language-Integrated Query (LINQ)

It sounds like Microsoft's Consulting Services has extended  Mr.Walker's OR-LOS for Commercial Lending.  If you have the time (28 minutes) its worth a look but my overall impression is this could only be useful for a supper huge bank/lender that has the IT staff to pull it off otherwise its just overly complicated.  The question still remains how scalable and dependable this framework would be.

Video: Loan Origination Commercial Extension

Also according to Mr. Walker Microsoft will increase its participation with industry standards ( ie MISMO)

Microsoft's XML Team just announced the release of XML Notepad 2007 2.3

You can find the change log here and down load here.

This is the new feature that caught my eye.

"better handling of XML documents containing illegal characters"