Hi, I am looking for a way to embed external rss/xml files into my html page, how/is this possible?

yes
w/ pure html no server side script
here is a sample zip file HERE
the zip contains .html .xml .xsl
the html reads the xml and use the style from xsl

i use this script on my old site the downside is it can only be viewed w/ internet explorer

hopefully, you can use php and other server side script to read or grab rss/xml news feeds and it is browser independent

Yes, this is through JavaScript and the XmlHttpRequest object (I think that's what it is called). If you need to do it through a server-side scripting technology such as PHP or ASP, it is technically called AJAX (asynchronized javascript and XML). But as for client-side scripting, you can do it all through JavaScript.

Here is a real live example: http://dhseagles.kpdsb.on.ca/boysHockey2007/roster.php
The JavaScript is right on the page, it isn't in an external file. As you can see, it loads an XML file into the browser and grabs the text nodes of specific elements into variables, which I can pass onto the correct <div> or <td> or whatever.

Hope this helps