XML noob questions

I’ve just made my first sitemap, woohoo!!

Ok, I’ve had it checked on the w3schools xml validator and it’s happy with the blurb I’ve written. I just have a few questions now as to how I should use this for the SEO benefits I’m led to believe it will give me:

  1. Do I simply submit the website url of the xml page eg www.mywebsite.com/sitemap.xml to the search engines and leave it at that? The sitemap will work it’s magic with the crawlers, just like that?

  2. When I see websites like this page here http://www.smartwebby.com/site_map.asp and it has a site map as shown, does that have anything to do with the multi-coloured code that is displayed in the brower that would appear in the xml raw form? To put it another way, this link I’ve just provided…is that essentially just html/css hand coded links, or does the actual sitemap.xml file have anything to do with it’s construction?

  3. How important is it for me to have something like the example shown above, or is that simply for ‘show’/listing the links in a simple format? Does it improve my SEO chances by having a page like that in HTML/CSS form, or would it need to be some fangled witchcraft spawned page that somehow uses the xml code to draw up the content?

Cheers, Rana