XML Feed to Remote Banner Ads

Just as a precursor, I am new to XML/XSLT and apologize for any ignorance on my part. My company, wanting to create an affiliate program of sorts, has created an XML file of our new products database.

What the heck do I do with this XML file?

The structure is similar to the following:

<?xml version="1.0" encoding="iso-8859-1" ?><STOREITEMS><PRODUCT ITEM='4929'>
<NAME>Bags Depot Rolling backpack with rolling wheel and pulling handle.</NAME>
<PICTURE>/images/prodpics/prodthumbs/3060000/3060455.jpg</PICTURE>
<MODEL>30246 - 2027</MODEL>
<PRICE>22.67</PRICE>
<URL value="/product_info.php?products_id=4929"></URL>
</PRODUCT>
</STOREITEMS>

I am under the assumption that I would create an XSL file that would format this information, then have affiliates call this file via a <script> tag from their respective sites.

Does this seems like a reasonable assessment?

Additionally, is there a way for the XSL file to select a random product via the ITEM# or something similar, or should that be done server side...?

I guess, I am not sure where to start, any input is appreciated.

Thanks,

J.