Can I make SQL read XML directories automatically?

[cariaco99]

I need some help with XML & SQL. How can I set up MS SQL so it reads a 'virtual directory' where another cmpany wibb be dropping xml files with transactions. I need SQL to read the directory, and when it finds new dropped XML files, read them and trigger a stored procedure that will process the data from the XML file and insert it in my tables.
Can anybody point me in the right direction? Can SQL do this at all? do I need Biztalk?
Help would be most appreciated.
Rafael