MY first question is. We created a xhtml education center is it possible to have the text put in a XML folder. And if so what is the benefit of it.

You can do it, sure. It's up to your server setup. XML itself doesn't have a concept of an "XML folder," so it's really just a bin where you put your files.

My second question would be would if XML would be search engines friendlier

Possibly, but I'm no SEO expert. This site is crawling with them, so they could answer your question better than Yours Truly.

and last is there any education regards XML

If you google XML, you'll get a gazillion hits, and very few of them will be actually useful. You'll spend so much time trying to sift gems from the dross that you'll likely get discouraged.

Here's what worked for me:

1) Get <oXygen/> (They don't want us linking directly to them, but this is made by SynchroSoft).

2) Go to W3Schools [w3schools.com]. They rock.

3) Flounder around. Make mistakes. At some point, a light bulb will appear over your head and an angelic choir will strike up.

XML and its attendant manifestations hit you like that. It's a great deal simpler than it seems.