This Error occurs for some strange reasons. To overcome this error, just register XML3 and XML6 version. Commands to register XML Version.
regsvr32 msxml3.dll
regsvr32 msxml6.dllMore on this error: http://social.msdn.microsoft.com/forums/en-US/sqlintegrationservices/thread/3bd72b8a-aa9e-4cb9-8d3c-5a623c026e62/Hope this would help someone with error in SSIS Package.Regards,
Rajesh