TYPE directive of FOR XML

SQL Server 2000 always returns the result of a FOR XML query directly to the client in textual form. 

SQL Server 2005 enables you to optionally request that the result of a FOR XML query be returned as xml data type by specifying the TYPE directive. 

This allows you to process the result of a FOR XML query on the server. 

If the TYPE directive is not specified, the FOR XML query result is returned as type nvarchar(max).

Eg:
SELECT CID, NAME, PHNO
FROM EMPLOYEE
ORDER BY CID
FOR XML AUTO, TYPE 

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