Information represented in text-based markup languages, such as XML, is often a large, highly nested structure corresponding to complex patterns of metadata and/or data. Parsing such data streams via conventional software mechanisms rapidly exhibits degrading performance as the size, or volume, of data increases. Further, such do not perform dynamic modification to the output in response to feedback based on the data being parsed. An adaptive XML processing hardware apparatus processes an XML document in a manner suited to the invoking application, and processes the incoming XML into an optimal structure based on the type of data and a set of rules relating the type of the data to the output format. It also dynamically augments the output information stream based on the data, at the option of the invoking system. The generated output may take a tree form, adaptable for efficient traversal of the hierarchical structure represented by the input XML, or may involve an attribute approach, in which the XML takes the from of a stream of fixed length cells containing optimized representations of input data, or may take a combination of the two approaches, based on configuration and XML input stream.