1. Download and install Lua for Windows from http://code.google.com/p/luaforwindows/
2. Set system environment variable LUA_CPATH=C:\Lua\5.1\clibs\?.dll; (or where you installed it + \clibs\?.dll;)
3. Open Lua (Command Line) - start/programs/lua/...
4. require "LuaXML"
5. print(package.loaded.LuaXML) -> true
6. print (xml) -> bunch o functions... the module name is hard coded in the module source
7. print(xml.load("C:/path/to/my/world.mcl") -> data, not errors
Okay, it works.
(Re)Start MuschClient, open a new dummy world (ip 0.0.0.0), comment out the sandbox, check allow dlls, set a script char, (...auto say, script char, send to execute)
require "LuaXML"
*Boom* The specified function was not found.
(I tend to use MC instead of Lua Command Line for debugging code. It's quick, the command history and such makes using it a nice interactive prompt. Using AddXML from MC isn't really the point, MC not loading modules that other Lua interpreters (Lua.exe, Scite, etc) can use is.)