Using loop in an XML file

This has probably be raised before, but I need to use the loop in an XML file so I can enable a Flash applett to read the latest entry headlines/exerpts etc from my site.

Is there any plugins available or any tips to allow me to do this?

I know that with Greymatter (yeah that old blogging system!) you could just set up a page/document with the variables and tell greymatter to update it when new entries were added. So it’d be similar to this? Is it possible with WordPress.

All the best, Max.