Error: Data at the root level is invalid. Line 4, position 7

Hi,
I am calling a NAV webservice, which in turn uses an XMLPort for importing data which was passed in the XML Request.
It gets a response "Data at the root level is invalid. Line 4, position 7" which I believe is error thrown by XMLPort while importing.

Earlier it was giving error that parameter is NULL, but now the above mentioned error. What could be the reason of this error?

1. Is encryption (CDataSection) required for passing request? If not mandatory, What is the advantage of using CDatasection?

Following is the XMLRequest XML's starting part:

<soap:Envelope xmlns:soap="http://schemas.xmlsoap.org/soap/envelope/"&gt;
<soap:Body>
<ImportCompanies xmlns="urn:microsoft-dynamics-schemas/codeunit/MT940Company">
<request>
<MT940Companies>
<Company>


Below is XMLPort:

Node Name Node Type Source Type Data Source
MT940Companies Element Text <MT940Companies>
Company Element Table <MT940 Company>(MT940 Company)
SQLServerName Element Text <SQLServerName>
DBName Element Text <DBName>
CompanyName Element Field MT940 Company::Company Name
LegalEntityName Element Field MT940 Company::Legal Entity Name

Please help