ASP.NET webservices...hard to explain.
It's a webservice where people can access from within their applications, as if the application was on their local computer in a sense. Everything is done and sent over to the client via the webservice. So you could have a webservice which inserts data into a database for example, or things like MapPoint - based on WebServices I believe.
Xml is a technology and a language of its own I guess. It's an eXtensible Markup Language you can do really cool things with Xml, such as serialization. You can store items in xml, like a database, and read them back. You can send xml from one place to another and share things between each other. It's a large topic to cover..
benefits of ASP.NET webservice is that you can interact with the application over the internet and do whatever it is that the application is based on, such as perhaps realtime applications or something. You can get ASP.NET webservices which can return you objects that you can use within your application, which is really cool. There are webservices out there that you can get say, the weather information, or a list of people's names or whatever. The possibilities are endless especially when it comes to Microsoft technology and platform.
Xml is used widely in applications and within SQL Server 2000/2005.
http://msdn.microsoft.com/XML/Understanding/default.aspx
http://www.htmlgoodies.com/beyond/xml/article.php/3473531
http://www.xml.com/pub/a/98/10/guide0.html
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