The version shipped with F16 has at least one (minor) bug (cf. https://rt.cpan.org/Public/Bug/Display.html?id=62223). The Rawhide RPM (perl-XML-LibXML-1.97-1.fc18.i686.rpm) works fine and should be pushed to F16 as well.
That's a big change for the F16 version. Does the F17, v1.90, package work for you?
Yes, perl-XML-LibXML-1.90-1.fc17.i686 has the bug fixed as well and would be sufficient.
perl-XML-LibXML-1.90-1.fc16 has been submitted as an update for Fedora 16. https://admin.fedoraproject.org/updates/perl-XML-LibXML-1.90-1.fc16
Package perl-XML-LibXML-1.90-1.fc16: * should fix your issue, * was pushed to the Fedora 16 testing repository, * should be available at your local mirror within two days. Update it with: # su -c 'yum update --enablerepo=updates-testing perl-XML-LibXML-1.90-1.fc16' as soon as you are able to. Please go to the following url: https://admin.fedoraproject.org/updates/FEDORA-2012-8721/perl-XML-LibXML-1.90-1.fc16 then log in and leave karma (feedback).
perl-XML-LibXML-1.90-1.fc16 has been pushed to the Fedora 16 stable repository. If problems still persist, please make note of it in this bug report.