You're trying to read node's attribute, but in your example nodes have no attributes. 'Testserver' is value of <servername> node, not attribute.
public static string getServer()
{
string serverName = "";
XmlTextReader reader = new XmlTextReader(filename);
XmlNodeType nType = reader.NodeType;
while (reader.Read())
{
if (reader.Name == "ServerName")
{
serverName = reader.Value;
break;
}
}
return serverName;
}