how do I remove the spaces, carriage returns from in between < and >
**START BELOW THIS LINE***
admin
If this is valid XML you could use the SaveOptions.DisableFormatting enumeration:
string input = @"<TestItem1Request>
<Username>admin</Username>
<Password>123abc..@!</Password>
<Item1>this is an item</Item1>
</TestItem1Request>";
string result = XElement.Parse(input).ToString(SaveOptions.DisableFormatting);
Console.WriteLine(result);