Sublime Text 3 plugin for formatting xml. Works on Sublime Text 2 as well. Created by André Bergonse http://www.bergspot.com/blog/2012/05/formatting-xml-in-sublime-text-2-xmllint/

tidy_xml_lint.py

import sublime, sublime_plugin, subprocess
 
class TidyXmlLintCommand(sublime_plugin.TextCommand):
	def run(self, edit):
		command = "XMLLINT_INDENT='\t' xmllint --format --encode utf-8 -"
 
		# help from http://www.sublimetext.com/forum/viewtopic.php?f=2&p=12451
		xmlRegion = sublime.Region(0, self.view.size())
		p = subprocess.Popen(command, bufsize=-1, stdout=subprocess.PIPE, stderr=subprocess.PIPE, stdin=subprocess.PIPE, shell=True)
		result, err = p.communicate(self.view.substr(self.view.sel()[0]).encode('utf-8'))
 
		if err != b"":
			self.view.set_status('xmllint', "xmllint: "+err)
			sublime.set_timeout(self.clear,10000)
		else:
			self.view.replace(edit, self.view.sel()[0], result.decode('utf-8'))
			sublime.set_timeout(self.clear,0)
 
	def clear(self):
		self.view.erase_status('xmllint')

@vladox in line 13, err hast to be set as string. therefore change:

self.view.set_status('xmllint', "xmllint: "+err)

to

self.view.set_status('xmllint', "xmllint: "+err.decode(encoding='UTF-8'))

however this will only get rid of the "TypeError:..." and not your real parse error