For the people that intend to do the same thing but have difficulty with encoding, this was a generalized solution that changed an .xml with UTF-16 encoding.
It worked in python 2.7 modifying an .xml file named "b.xml" located in folder "a", where "a" was located in the "working folder" of python. It outputs the new modified file as "c.xml" in folder "a", without yielding encoding errors (for me) in further use outside of python 2.7.
file = io.open('a/b.xml', 'r', encoding='utf-16')
lines = file.readlines()
outFile = open('a/c.xml', 'w')
for line in lines[0:len(lines)]:
#replace author:
pattern = '<Author>'
subst = ' <Author>' + domain + '\\' + user_name + '</Author>'
if pattern in line:
line = subst
print line
outFile.writelines(line)