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Shopify
Mark,
I just read about your problems with finding a good e-commerce tool. I feel your pain. I set up a friend of mine with 1&1's solution and it has been a headache to manage ever since. Shopify (www.shopify.info) has caught my eye since then, but I haven't had a chance to try out their service.
I saw you were looking for a tool to convert XML to CSV. We use Jitterbit for a lot of our data conversions. It may be a bit overkill for your application, but is really easy to use, and best of all, free! This open source application consists of a server that does the transformations and a client for graphically making the transformation. Learn more about it at www.jitterbit.com.