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I get this error with XMLTYPE while connecting to Oracle 10g. It worked fine when I used 'nclob' instead of XMLTYPE. In SSDL, the ProviderManifestToken is set to "Ora10gR2" and I am setting 'Direct=true' in the conn. string.

thanks
slaxman

We have just started a Tips & Tricks blog series here.
Take a look at the second point, it answers your question.