XMLTYPE constructor can't parse XML with node over 64K. It causes ORA-31167 error.
According to metalink the bug (Bug 4187258 ) should be fixed since 10.1.05 and based release 10.2.
We use 10.2.0.1 release and the problem remains.
We are processing large xml files with such nodes (by 3rd party - we can't influent maximal size of the node)