Your answer:
start = time.time()
fp = open('publisher_feed_8663.xml')
for line in fp:
a = line.split('<')
print time.time() - start
You will require a 1GB file named publisher_feed_8663.xml, python and a 2Ghz Intel Core 2 Duo machine.
For parsing of XML, you probably want to use an event based stream parser, such as SAX or lxml. I recommend reading the lxml documentation about iterparse: http://codespeak.net/lxml/parsing.html#iterparse-and-iterwalk
As for how long should this take, you can do trivial harddrive benchmarks on linux using tools like hdparm -tT /dev/sda.
More RAM always helps with processing large files, as the OS can keep a bigger disk cache.