OneSoulLegion (of Paradox forum fame, also a Paradox employe) wrote a small tool to help new modders out:

"I know using command line to convert those .xr files to .xml and back can get a little tedious, so here's a tip for you to make your life easier. It's pretty basic, but it does the job. =)

Basically, make yourself a batch file (a .bat file) with any name, I like "XR Tool.bat" myself. This can be placed on your desktop, or in a modding folder, or anywhere you can easily drag and drop files onto it, one by one or several at once.

Inside it, put the following and make sure to replace the path to your Warlock 2 folder as relevant on the two lines:

Code:

@echo off
if [%1]==[] goto :eof
:loop
if "%~x1" == ".xml" (
echo Compressing xml
"C:\Program Files (x86)\Steam\SteamApps\common\Warlock 2\XRconvert_Final.exe" %1 -t:bin
) else (
echo Extracting xml
"C:\Program Files (x86)\Steam\SteamApps\common\Warlock 2\XRconvert_Final.exe" %1
)
shift
if not [%1]==[] goto loop

Save the file, and you can then drag/drop files onto the .bat, and it'll convert them in the same folder as the original file.

The original Paradox Forum thread can be found here:
http://forum.paradoxplaza.com/forum/showthread.php?776232-A-quick-tool-for-converting-xr-xml-with-drag-and-drop.

If you have any questions, that's the place to ask them!

Cheers,