XML-based integrated services parsing

An improved system and method is provided for parsing in a distributed directory-enabled environment using an extensible Markup Language ("XML") application program interface. The method accepts an XML file as an input stream, parses the input stream, and scans the input stream for an object. Upon finding an object, the method determines whether the object references a system service and dynamically loads the referenced service. The service is dynamically configured and the object is instantiated in a class factory.