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loadXML in grid

We are currently displaying the data in the grid using the following method call
mygrid.loadXML("../VisualDisplay.xml");
This xml file is created at the server side and the client picks it up.
Please let us know if there is anyway to pass the XMLObject (instead of xml file) from the server side and load it at the client side

You can't pass XML object from server to client directly , you will need to convert it to XML string in any case
But usage of intermediate XML file is not necessary as well, you can call data directly from server side script

grid.loadXML("some_script.php"); //any other language can be used as well

in some_script.php you can get necessary data from DB or other storage and output it as XML string ( in result, client side code will fetch data from server side script, XML will be used only as data format )

Component can load data from client side XML object ( xml island , or custom XML objects )
    grid.parse(document.getElementById("xml_island"));   // loading from xml island
or
    grid.parse(xml_object);  //xml_object - client side xml object