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subgrid

It i my inderstanding that a sub grid may only be load by and "XML file" my question is can it be an XML string ?

While most simple way is to use separate XML file, component provides two events, which allows to change behavior and load sub-grid from any other source.
http://www.dhtmlx.com/docs/products/dhtmlxGrid/doc/articles/Sub_rows_new_data_dim.html#grid_subrowsndd

Something similar to next can be used.

grid.attachEvent("onSubGridCreated",function(subgrid,id,ind,data){
    subgrid.loadXMLString(data); // use the current data as configuration xml
    return false; // prevent default behavior
})