I have an xml file with database information that should be loaded when the script is installed or when the content of the file changes. Can I use md5_file() on the xml file
Your best bet would be to store the file mod time and compare it to a file mod time you check in the future.
if(filemtime('myfile.txt') > $result_set['filemtime']) { // file was modified }
I have hope that you can do the databasing yourself.