After you modify an XML file, if you place it in the folder specified in the Strings panel for that language, the XML file is loaded into the Flash document (FLA file) when it opens.
Regardless of where the XML file you imported was located, when you save, test, or publish the FLA file, a folder for each language in the Strings panel and an XML file for each language are created in the location indicated for publishing SWF files. If no publish path is indicated, the folder and file are saved in the same folder in which the FLA file is located. The XML files that the Strings panel generates are always populated with the information in the Strings panel.
Alternatively, import an XML file into the Strings panel from another location. After you import it, when you save, test, or publish the file, the XML file in the folder specified for that language is overwritten. You cannot import an XML file for a language unless it is already selected as an available language in the Strings panel. You can also add a language and import an XML file with the translation for that language.