Give this a spin. I was kind of screwing around with the Path::Class stuff just to have fun (not exactly how I'd do a production script -- still this has better error checking than the original and XML::LibXML is really quite nice).

use strict;
use warnings;
use XML::LibXML;
use Path::Class;

my $parser = XML::LibXML->new();
my $srcdir = shift || die "Forgot to give the source dir.\n";
my $dstdir = Path::Class::Dir->new( shift || die "Forgot to give the d
+estination dir.\n" );

my @files = map { Path::Class::File->new($_) } glob("$srcdir*\.xml");

for my $file ( @files )
{
    print $file, $/;
    my $doc = $parser->parse_file($file);
    my $new_file = Path::Class::File->new( $dstdir, $file->basename );
    print -e $new_file ?
        "Overwriting $new_file from $file\n"
        :
        "Creating $new_file from $file\n";

    $doc->toFile($new_file, 1);
}
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