Streaming XML

Hi
In my application I manage an XmlDocument object.
This document object grows bigger and bigger while the application
runs.
The document is used as a buffer of data, so it's frequently updated
and read, that's why I'm keeping it in mamory.
When the application closes, I save the cached data on the disk. Next
time the app starts, I load the saved data and continue working with
that buffered data.
I have 2 issues regarding this:

1. The first is related to memory usage. My document may grow up to
tens or hundreds megabytes in occupied memory. Is it another proper
way of keeping this object besides the "classical" in-memory?
2. When saving the document, I want to compress it. To do that, I have
a compressor class that compresses a IO.Stream. How do I stream the
XML document?

Thanks.

.

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