First of all, XML leaves out many features of SGML There are a few areas where XML and SGML really differ:
XML's white space handling rules are much less elaborate than those of SGML. One effect is that in a few, rarely-encountered, cases, an XML processor will pass through a some white space (mostly line-ends) that an SGML processor will suppress. It is very unlikely that an XML author or user will ever notice this.
XML defines, for documents, the property of being well-formed; this does not really correspond to any SGML concept.
XML has a very specific built-in method for handling international (non-ASCII) text. It is compatible with SGML, but at the moment, few SGML processors are properly internationalized.
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