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In the
.NET Framework version 2.0 release, the recommended practice is to create XmlReader instances using the XmlReader..::.Create method. This allows you to take full advantage of the new features introduced in this release. For more information, see Creating XML Readers.
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DTD processing is enabled by default for backwards compatibility. However, unless your application requires DTD processing, you should disable this setting. Disabling DTD processing can be useful in preventing certain denial of service attacks. If set to true, the reader throws an XmlException when any DTD content is encountered.
If you have DTD processing enabled, you need to be aware of including DTDs from untrusted sources and possible denial of service attacks. Use the XmlSecureResolver to restrict the resources that the XmlTextReader can access. You can also design your application so that the XML processing is memory and time constrained. For example, configure time-out limits in your ASP.NET application
For more information, see Security and Your System.Xml Applications.