+1  A: 
CREATE TABLE dbo.Person(ID int, [Name] varchar(50))

DECLARE @docHandle int

DECLARE @xmlDocument XML
SET @xmlDocument = N'<ROOT>
<Student>
  <name>XYZ</name>
  <id>123</id>
  <fathersname>XYS</fathersname>
  <fathersid>3489</fathersid>
</Student>
<Student>
  <name>ABC</name>
  <id>456</id>
  <fathersname>DEF</fathersname>
  <fathersid>7859</fathersid>
</Student>
</ROOT>'

EXEC sp_xml_preparedocument @docHandle OUTPUT, @xmlDocument

-- student's data first
INSERT INTO dbo.Person
SELECT * 
  FROM OPENXML(@docHandle, N'/ROOT/Student',2) 
    WITH (id int, name varchar(50))

-- now insert father's data
INSERT INTO dbo.Person
SELECT * 
  FROM OPENXML(@docHandle, N'/ROOT/Student',2) 
    WITH (fathersid int, fathersname varchar(50))


SELECT * FROM dbo.Person

EXEC sp_xml_removedocument @docHandle 
DROP TABLE dbo.Person

To open from a file:

declare @xmlDocument XML
SET @xmlDocument=(SELECT * FROM OPENROWSET(
   BULK 'c:\Temp\Student.xml',
   SINGLE_BLOB) AS x)

UPDATE:
Sorry, did not see that you are trying to split <father> into a different row, I have simply added one more INSERT for that. If you need more control over the loading process, you can always consider setting up an ETL job in SSIS.

UPDATE 2
Well here is a creative way with one insert only, but two selects -- not sure about the performance at all. Again, we are splitting one record into two rows.

INSERT INTO dbo.Person
    SELECT 
     x.e.value('id[1]', 'int') AS "id"
     ,x.e.value('name[1]', 'varchar(10)') AS "Name" 
    FROM @xmlDocument.nodes('/ROOT/Student') AS x(e)
    UNION
    SELECT 
     x.e.value('fathersid[1]', 'int') AS "id"
     ,x.e.value('fathersname[1]', 'varchar(10)') AS "Name"
    FROM @xmlDocument.nodes('/ROOT/Student') AS x(e);
Damir Sudarevic
Hi.. Is it possible to do this with only one insert and select statement? I was actually looking for that only..
Prabhu
Don't see how -- you are trying to split one record into two rows in one insert. But then there may be a creative way somehow...
Damir Sudarevic
Just for run look at UPDATE 2.
Damir Sudarevic