It indents XML, but uses tabs to do it. When you convert the tabs to spaces, you have 8 columns per indent level, which is about 4 times more than is desirable. You can fix this. Go into Tools ⇒ General Editor ⇒ General ⇒ Tabs, and configure insert spaces and the tab size. You do this on a per language basis.
It will generate a skeleton XSD (XML Scheme Definition) schema just given an example conforming XML file. You can then polish it by refining the restrictions. Any point you can validate your schema or your XML, as conforming to the basic XML spec or conforming to your custom schema with the click on the menu.
It does far more than you would guess from a cursory exploration of the menus. There are a number of videos to introduce the program’s abilities. You could spend years learning to use it all. It can suck data out of/export to EDI/X12, SQL (Standard Query Language), live SOAP (Simple Object Access Protocol) feeds, fixed field width files, CSV (Comma-Separated Value) files, CVS (Concurrent Versions System) repository, SourceSafe, ClearCase (not Subversion)… It can generate Java code. You can graphically build a program to select fields out of one XML file to generate another.
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