What versions of Joomla or mambo are you moving content to/from?
What versions of export content do you have setup on the source and destination sites?
What language is it in?

QUOTE:
I even copied and pasted the xml into the zip file and still nothing?

I get this error when I try to install the exported package as a component.

This error is misleading because it says that the XML can't be found where as it should say the installer can't parse it.

When moving content into Joomla 1.0+ series you may get an error like this if the installer finds one or more characters that can't parse because the site installer chocked.

So if you have copy/pasted anything from word for example or any other similar editor it may be because it has created a few characters that are causing the trouble.

If this is the case you will normally see small squares instead of the intended text.
Note: this will usually be punctuation.

Or if there is another language other than English it may be one or more characters of that language that is stopping the installer.

Please post back with your results.