Here is an update for your code.
<Window x:Class="SimpleListTemplate.Window1"
xmlns="http://schemas.microsoft.com/winfx/2006/xaml/presentation"
xmlns:x="http://schemas.microsoft.com/winfx/2006/xaml">
<Window.Resources>
<XmlDataProvider x:Key="DcCharacters">
<x:XData>
<Characters xmlns="">
<Character HeroName="Catwoman" Identity="Selina Kyle" />
<Character HeroName="Batman" Identity="Bruce Wayne" />
<Character HeroName="Starman" Identity="Jack Knight" />
</Characters>
</x:XData>
</XmlDataProvider>
<Style TargetType="{x:Type ListBoxItem}" x:Key="ContainerStyle">
<Setter Property="Padding" Value="0,0,0,0"/>
</Style>
</Window.Resources>
<Grid>
<ListBox
ItemsSource="{Binding Source={StaticResource DcCharacters}, XPath=//Characters/*}"
ItemContainerStyle="{StaticResource ContainerStyle}"
HorizontalContentAlignment="Stretch">
<ListBox.ItemTemplate>
<DataTemplate>
<Label
Content="{Binding XPath=@HeroName}"
Height="40"
VerticalContentAlignment="Center"
Background="LightGreen"
BorderThickness="2"
BorderBrush="DarkGreen"/>
</DataTemplate>
</ListBox.ItemTemplate>
</ListBox>
</Grid>
</Window>
This may solve your problem.
Sauron
2009-09-11 09:27:36