use strict;
use warnings;
use DBI;
use XML::Simple;

my $dbh = DBI->connect( ... );
my $xml = XMLin(\*DATA, keyattr => 'document');
insert($_) for @{$xml->{document}};

sub insert {
   my $hash = shift;
   my $sth = $dbh->prepare(
      'insert into bar ('
      . join(',', keys %$hash)
      . ') values ('
      . join(',',map '?',keys %$hash)
      . ')'
   );
   $sth->execute(values %$hash);
}

__DATA__
<documents>
   <document>
      <stayonhost>1</stayonhost>
      <staybelow>1</staybelow>
      <maxdepth>2</maxdepth>
      <name>Swedish Foo</name>
      <home_url>http://www.foo.se/bar/</home_url>
      <category>International</category>
   </document>
   <document>
      <stayonhost>0</stayonhost>
      <staybelow>0</staybelow>
      <maxdepth>3</maxdepth>
      <name>Swedish Bar</name>
      <home_url>http://www.bar.se/baz/</home_url>
      <category>National</category>
   </document>
</documents>
[download]

UPDATE: May 2
Ahhh, how about a version with DBI::Wrap?

use DBI::Wrap;
use XML::Simple;

my $dbh = DBI::Wrap->new( ... );
$dbh->table('hacker');

my $xml = XMLin(\*DATA, keyattr => 'document');
$dbh->insert(Values => $_) for @{$xml->{document}};

__DATA__
(insert data from above snippet)
[download]

jeffa

L-LL-L--L-LL-L--L-LL-L--
-R--R-RR-R--R-RR-R--R-RR
B--B--B--B--B--B--B--B--
H---H---H---H---H---H---
(the triplet paradiddle with high-hat)