XML - There is an unclosed literal string

I have two environments test and prod and are identical. I have a scheduled task which runs locally every night at 00:00 on both env. The task points to an app which works locally with a local database (SQL V8, I REAPEAT SQL V8). Same app for both but different local DB.

The task is run by the same user. I got this error in the task manager: 0xe0434f4d. There is enough space in all the hard drives, the user has enough rights, both app (test/prod) are exactly the same and the %temp% folder is clean. The application is used to create xml files with the last changes stored in the database.

As I have read in other webs/blogs one solution is to increase the number of characters retrieved from the server for XML data. To change this setting, on the Tools menu, click Options and go to Query results, sql server and results to grid, but, How can I do this in SQL V8????

I've tried to run the app manually and I face the following error:

There is an unclosed literal string. Line 1535, position 78.

Unhandled Exception: System.Xml.XmlException: There is an unclosed literal string. Line 1535, position 78.
   at System.Xml.XmlTextReaderImpl.Throw(Exception e)
   at System.Xml.XmlTextReaderImpl.Throw(String res, String arg)
   at System.Xml.XmlTextReaderImpl.ParseAttributeValueSlow(Int32 curPos, Char quoteChar, NodeData attr)
   at System.Xml.XmlTextReaderImpl.ParseAttributes()
   at System.Xml.XmlTextReaderImpl.ParseElement()
   at System.Xml.XmlTextReaderImpl.ParseElementContent()
   at System.Xml.XmlTextReaderImpl.Read()
   at System.Xml.XmlLoader.LoadNode(Boolean skipOverWhitespace)
   at System.Xml.XmlLoader.LoadDocSequence(XmlDocument parentDoc)
   at System.Xml.XmlLoader.Load(XmlDocument doc, XmlReader reader, Boolean preserveWhitespace)
   at System.Xml.XmlDocument.Load(XmlReader reader)
   at System.Xml.XmlDocument.Load(String filename)
   at Belron.Bridge.Export.Config.ErrorLog.WriteErrors(String errorMessage, String stackTrace)
   at Belron.Bridge.Export.Config.ErrorLog.WriteToErrorLog(String errorMessage,
String stackTrace, Boolean displayErrorWindow)
   at Belron.Bridge.Export.Standalone.main.Main(String[] args)