Obviously I don't know the specifics, but it seems unlikely that you should be putting your xml document into the query string.
To check if the document is well-formed, have the PHP save it into a file, and open it using a browser which understands XML (Firefox, IE, something like that). That will quickly complain if it's not well-formed.
Incorrect case in closed tags constitutes a badly formed document.
Read the docs for your integration - it's normal that you have to put the document into the post payload.
Some hosts require it to be inside a form-encoded post payload, in which case the XML will need further URL encoding, and putting inside a form-encoded post message.
You do realise that you have to escape strings inside XML text nodes or attributes, right?
Finally, you do realise that if you don't specify encoding in the XML document, it should be interpreted as UTF-8, which is probably not what you want (as PHP is lame and doesn't support any non 8bit encodings whatsoever, and it treats those as binary).
Mark