Hi Denis,
I think this error is expected. The documentation section on " for xml subqueries"
includes the restriction
"A for xml subquery cannot be a correlated subquery. For more information on correlated subqueries, see the Transact-SQL User’s Guide."
Getting a result set that is a mix of plain values and xml output is going to be tricky,
the feature really was primarily intended to just return the whole result set as xml.
I'm not a big fan of cursors, but a way to get the results I think you want would be
to create a work table containing all the distinct values of cargo_type_list_code
and a varchar column to hold the xml filled with nulls. The create a cursor to update the varchar column with the xml output for each individual value. I haven't actually tried this.
-bret