AnyData can read data in various formats, including tab-delimited, treat them as relational tables, and export them in other formats, including XML.

Something like adConvert('Tab','foo.tab','XML','foo.xml'); should work.

Of course you can also do it simply by reding the tab delimited file, using split to extract the individual fields and then printing them as you see fit. The requirement to export each single row in a different file is unlikely to be directly supported by any module.