Note that this will only work if a) your host is running Apache, and b) the host used 'x-httpd-php5' as the type.
Also, note that by sending XML files through the PHP parser, you run the risk of XML code being inadvertently handled as PHP code, especially if short_tags is enabled. You should therefore take measures to ensure that the short_tags directive is Off (e.g. in the .htaccess file using php_flag, again only if PHP was installed as an ISAPI module).
Obviously, this means you can't use the short_tag syntax of "<?=" to print out variables. Note, however, that the short_tags directive has been deprecated for some time now and you should remove it from your scripts (and coding habits) regardless of whether you're working with XML or not.