It's a little more "expensive" in terms of computer resources than Notepad, but I use Altova's free XMLSpy. It auto-checks your XML to make sure you don't have any "hanging" open tags, and when you type in a new tag, it will autocomplete the closure tag for you. Very convenient.
Also, if you don't know this already, copy the XML files you are editing into the custom assets folder or a new mod folder. That way, if you mess it up, you can just delete your copy and Civ4 will still work.
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