Best way to architect a solution for XML.

Hi All,
I am attempting to ascertain the best method to deal with this scenario:
A third party piece of software produces an xml which contains a product list.
I want to take this xml strip out some unrequired strings and then compare the differences between the current live product list - which is a web based product list stored in an oracle database and the incoming xml.
I then want to take the delta, i.e. the change since product list was last loaded and generate xml for the new/changed product - to load into another database.
My initial thoughts were to load the xml into a staging table in the database - do a compare with a master table and then generate the delta xml.
Does this sound like a good idea or am I missing a trick?
If this is a reasonable sounding method can anyone point me in the direction of an example piece of code for loading the xml file into the database?

Possibly (for a good generic answer)
Here are some things to read to help you along with that decision and to find examples.
{thread:id=410714}
{thread:id=836365}
[Selecting XML data directly from your local disk|http://www.liberidu.com/blog/?p=358#more-358]

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