if the form is still within php then you don't need to use <?=$xml?>
<?php
$xml='
<?xml version="1.0" encoding="iso-8859-1"?>
<Request><Send><Key>123123123</Key><Number>10</Number></Send><BInfo><LName>Pizza</LName><LAddress>somewhere</LAddress><LCity>city</LCity><LState>NY</LState><LZip>112</LZip><LPhone>131313132</LPhone></BInfo></Request>
';
echo "<form method='post' action='script.php'>
<input type='text' name='xml' value='$xml'>
<input type='submit' name='submit' value='submit'>
<form>";
?>
If the form is outside of php then maybe your server doesn't allow short-hand php.
<?php
$xml='
<?xml version="1.0" encoding="iso-8859-1"?>
<Request><Send><Key>123123123</Key><Number>10</Number></Send><BInfo><LName>Pizza</LName><LAddress>somewhere</LAddress><LCity>city</LCity><LState>NY</LState><LZip>112</LZip><LPhone>131313132</LPhone></BInfo></Request>
';
?>
<form method='post' action='script.php'>
<input type='text' name='xml' value='<?php echo $xml; ?> '>
<input type='submit' name='submit' value='submit'>
<form>