xml elements vs datamerge

I am trying to simulate the data merge option 'remove blank lines for empty fields' using an xml based setup.



I have a template with the xml elements from the structure placed in a text box.



When I create a new document from the template and import my xml file (with delete elements that do not match...) and drop it into my text box it creates the variable pages without a problem.



But if there is a blank element it still merges the carriage return which follows the element.



Can I lay out my elements (tagged place holders) so that each prints on a separate line without a blank line where there is no data for a record?



I hope that I am going down the right track trying to use xml in place of data merge because I need to produce 10,000 personalized pages and datamerge is painfully slow if it works at all.



Thanks,



Handall