I use JAXB from the Apache Project.
http://jaxb.java.net/
It is a little different from the GWT XML library. Instead of writing code to crawl through the xml tree and do your own processing, you define the file definition using xsd, run a program to create a bunch of data transfer classes and then parse the xml file(s) all at once.
A few caveats:
Make sure the JAXB jars are above the jre libraries in your build path.
There are issues with the latest versions and GAE, so if you are using GAE stick with the 20090708 version.