Best Method to Parse XML logs in real time

I need to parse some XML logs from a game. The game server writes the events into the xml file in real time. I will need to parse through this file about every 2-3 seconds to check and see what new events the game server has written into the XML logs. Obviously, these logs can get pretty large. Is there a way I can parse the log, and leave some sort of marker, so that the next time I go to parse the XML file that I don't need to start from the beginning, but rather I can start from the last place I left off.

What is the best method to do this?

Given the way XML is organized that can be rather hard.

Why can't you just trick the game server into piping its output to you? That would make checking the logs far easier.