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How do I pass 60 thousand + record dataset as XML to stored procedure using stringwriter and writetoxml ?
In small chuncks!
The trick is to reduce the memory footprint. It is just a way to avoid the memory limit, it will not improve the design.
Use a loop in which you build a small datasets of next 100 records, load it to database and loop for next set until the end.
I agree with Maciej Los, it sounds like bad design and abuse of facilities provided with the language.
Only if you explain what you do and the reasons, we will be able to help more.