diff --git a/src/extension.ts b/src/extension.ts
index 4a40476..5e630d7 100644
--- a/src/extension.ts
+++ b/src/extension.ts
@@ -45,19 +45,19 @@ export function activate(context: vscode.ExtensionContext) {
                     state === vscode.TreeItemCheckboxState.Checked
                 );
                 
-                // Update XML edits button text if that setting changed
-                if (item.settingKey === 'xmlEditsEnabled') {
+                // Update formatting instructions button text if that setting changed
+                if (item.settingKey === 'includeFormattingInstructions') {
                     xmlEditsButton.text = prompterTreeProvider.isXmlEditsEnabled() ? 
-                        "$(check) XML Edits" : "$(diff-added) XML Edits";
+                        "$(check) Formatting Instructions" : "$(diff-added) Formatting Instructions";
                 }
             }
         }
     });
 
-    // Create XML edits toggle button
+    // Create formatting instructions toggle button
     const xmlEditsButton = vscode.window.createStatusBarItem(vscode.StatusBarAlignment.Left);
-    xmlEditsButton.text = "$(diff-added) XML Edits";
-    xmlEditsButton.tooltip = "Toggle XML Edits mode";
+    xmlEditsButton.text = "$(diff-added) Formatting Instructions";
+    xmlEditsButton.tooltip = "Toggle formatting instructions mode";
     xmlEditsButton.command = 'prompter.toggleXmlEdits';
     xmlEditsButton.show();
 
diff --git a/src/models/settings.ts b/src/models/settings.ts
index 609cfef..6c2805e 100644
--- a/src/models/settings.ts
+++ b/src/models/settings.ts
@@ -1,15 +1,13 @@
 // Settings interface for the Prompter extension
 export interface PrompterSettings {
-    xmlEditsEnabled: boolean;
-    includeLineNumbers: boolean;
-    includeComments: boolean;
+    includeFormattingInstructions: boolean;
     tokenCalculationEnabled: boolean;
+    includeFileMap: boolean;
 }
 
 // Default settings values
 export const DEFAULT_SETTINGS: PrompterSettings = {
-    xmlEditsEnabled: false,
-    includeLineNumbers: false,
-    includeComments: true,
-    tokenCalculationEnabled: true
+    includeFormattingInstructions: false,
+    tokenCalculationEnabled: true,
+    includeFileMap: true
 };
diff --git a/src/providers/prompterTreeProvider.ts b/src/providers/prompterTreeProvider.ts
index 4c1c1a1..e968856 100644
--- a/src/providers/prompterTreeProvider.ts
+++ b/src/providers/prompterTreeProvider.ts
@@ -129,10 +129,9 @@ export class PrompterTreeProvider implements vscode.TreeDataProvider<FileTreeIte
     // Get settings items for the tree view
     private getSettingsItems(): SettingTreeItem[] {
         return [
-            new SettingTreeItem('XML Edits', 'xmlEditsEnabled', this.settings.xmlEditsEnabled),
-            new SettingTreeItem('Include Line Numbers', 'includeLineNumbers', this.settings.includeLineNumbers),
-            new SettingTreeItem('Include Comments', 'includeComments', this.settings.includeComments),
-            new SettingTreeItem('Token Calculation', 'tokenCalculationEnabled', this.settings.tokenCalculationEnabled)
+            new SettingTreeItem('Include Formatting Instructions', 'includeFormattingInstructions', this.settings.includeFormattingInstructions),
+            new SettingTreeItem('Token Calculation', 'tokenCalculationEnabled', this.settings.tokenCalculationEnabled),
+            new SettingTreeItem('Include File Map', 'includeFileMap', this.settings.includeFileMap)
         ];
     }
     
@@ -147,15 +146,15 @@ export class PrompterTreeProvider implements vscode.TreeDataProvider<FileTreeIte
         return this.showingSettings;
     }
 
-    // Toggle XML edits setting
+    // Toggle formatting instructions setting
     toggleXmlEdits(): void {
-        this.settings.xmlEditsEnabled = !this.settings.xmlEditsEnabled;
+        this.settings.includeFormattingInstructions = !this.settings.includeFormattingInstructions;
         this.refresh();
     }
 
-    // Check if XML edits are enabled
+    // Check if formatting instructions are enabled
     isXmlEditsEnabled(): boolean {
-        return this.settings.xmlEditsEnabled;
+        return this.settings.includeFormattingInstructions;
     }
 
     // Get all settings
diff --git a/src/utils/promptGenerator.ts b/src/utils/promptGenerator.ts
index 3fa1e15..d21b17c 100644
--- a/src/utils/promptGenerator.ts
+++ b/src/utils/promptGenerator.ts
@@ -31,12 +31,8 @@ export class PromptGenerator {
             fileContents.set(filePath, { content, tokens });
         }
 
-        // Generate the prompt based on settings
-        if (settings.xmlEditsEnabled) {
-            return this.generateXMLPrompt(fileContents, settings);
-        } else {
-            return this.generatePlainPrompt(fileContents, settings);
-        }
+        // Always generate XML prompt
+        return this.generateXMLPrompt(fileContents, settings);
     }
     
     /**
@@ -55,16 +51,7 @@ export class PromptGenerator {
             
             // Add the file to the prompt
             promptText += `File: ${fileName}\n`;
-            
-            // Add line numbers if enabled
-            if (settings.includeLineNumbers) {
-                const lines = content.split('\n');
-                for (let i = 0; i < lines.length; i++) {
-                    promptText += `${i + 1}: ${lines[i]}\n`;
-                }
-            } else {
-                promptText += `${content}\n`;
-            }
+            promptText += `${content}\n`;
             
             promptText += '\n';
         }
@@ -78,58 +65,156 @@ export class PromptGenerator {
     }
     
     /**
-     * Generate an XML formatted prompt
+     * Generate an XML formatted prompt following the new schema format
      * @param files Map of file paths to content and token counts
      * @param settings Settings to apply
      * @returns XML formatted prompt
      */
     private static generateXMLPrompt(files: Map<string, { content: string; tokens: number }>, settings: PrompterSettings): string {
-        const xmlParts = ['<?xml version="1.0" encoding="UTF-8"?>', '<prompt>'];
+        const xmlParts: string[] = [];
+        
+        // Include XML formatting instructions if enabled
+        if (settings.includeFormattingInstructions) {
+            try {
+                // Get the workspace root path
+                const workspaceRoot = vscode.workspace.workspaceFolders?.[0]?.uri?.fsPath || '';
+                const formattingInstructionsPath = path.join(workspaceRoot, '..', 'project_management', 'xml_formatting_instructions.xml');
+                
+                if (fs.existsSync(formattingInstructionsPath)) {
+                    const instructions = fs.readFileSync(formattingInstructionsPath, 'utf8');
+                    xmlParts.push(instructions);
+                }
+            } catch (error) {
+                console.error('Error reading XML formatting instructions:', error);
+            }
+        }
 
-        // Add files section
-        xmlParts.push('  <files>');
+        // Generate file map section if enabled in settings
+        if (settings.includeFileMap) {
+            xmlParts.push('<file_map>');
+            
+            // Get the workspace root path
+            const workspaceRoot = vscode.workspace.workspaceFolders?.[0]?.uri?.fsPath || '';
+            xmlParts.push(workspaceRoot);
+            
+            // Create a tree representation of the files
+            const fileTree = this.generateFileTree(files, workspaceRoot);
+            xmlParts.push(fileTree);
+            xmlParts.push('</file_map>');
+        }
+        
+        // Generate file contents section
+        xmlParts.push('<file_contents>');
+        
+        // Add each file with its content
         for (const [filePath, { content, tokens }] of files) {
             const extension = path.extname(filePath);
             let language = extension.substring(1); // Remove the dot
             
-            // Handle special cases
+            // Handle special cases for language detection
             if (extension === '.js' || extension === '.jsx') {
                 language = 'javascript';
             } else if (extension === '.ts' || extension === '.tsx') {
                 language = 'typescript';
+            } else if (extension === '.md') {
+                language = 'md';
+            } else if (extension === '.py') {
+                language = 'python';
+            } else if (extension === '.html') {
+                language = 'html';
+            } else if (extension === '.css') {
+                language = 'css';
+            } else if (extension === '.json') {
+                language = 'json';
             }
             
-            xmlParts.push('    <file>');
-            xmlParts.push(`      <path>${path.basename(filePath)}</path>`);
-            xmlParts.push(`      <type>${language}</type>`);
-            xmlParts.push(`      <tokens>${tokens}</tokens>`);
+            // Use content as is
+            const formattedContent = content;
             
-            // Format content based on settings
-            let formattedContent = content;
-            if (settings.includeLineNumbers) {
-                const lines = content.split('\n');
-                formattedContent = lines.map((line, i) => `${i + 1}: ${line}`).join('\n');
-            }
+            // Get the workspace root path if not already defined
+            const workspaceRoot = vscode.workspace.workspaceFolders?.[0]?.uri?.fsPath || '';
             
-            xmlParts.push(`      <content><![CDATA[${formattedContent}]]></content>`);
-            xmlParts.push('    </file>');
-        }
-        xmlParts.push('  </files>');
-
-        // Add options based on settings
-        xmlParts.push('  <options>');
-        if (settings.includeLineNumbers) {
-            xmlParts.push('    <include_line_numbers>true</include_line_numbers>');
-        }
-        if (!settings.includeComments) {
-            xmlParts.push('    <exclude_comments>true</exclude_comments>');
+            // Add file entry
+            xmlParts.push(`File: ${this.getRelativePath(filePath, workspaceRoot)}`);
+            xmlParts.push(`\`\`\`${language}`);
+            xmlParts.push(formattedContent);
+            xmlParts.push('\`\`\`');
         }
+        
+        xmlParts.push('</file_contents>');
+        
+        // Calculate tokens for toast notification but don't include in XML
         if (settings.tokenCalculationEnabled) {
-            xmlParts.push(`    <total_tokens>${Array.from(files.values()).reduce((sum, { tokens }) => sum + tokens, 0)}</total_tokens>`);
+            const totalTokens = Array.from(files.values()).reduce((sum, { tokens }) => sum + tokens, 0);
+            // We'll show this in a toast notification but not include it in the XML
+            vscode.window.showInformationMessage(`Total tokens: ${totalTokens}`);
         }
-        xmlParts.push('  </options>');
-
-        xmlParts.push('</prompt>');
+        
         return xmlParts.join('\n');
     }
+    
+    /**
+     * Generate a tree representation of files
+     * @param files Map of file paths
+     * @param rootPath The workspace root path
+     * @returns String representation of the file tree
+     */
+    private static generateFileTree(files: Map<string, any>, rootPath: string): string {
+        // Create a simple tree representation
+        const treeLines: string[] = [];
+        
+        // Group files by directory
+        const dirMap = new Map<string, string[]>();
+        
+        for (const filePath of files.keys()) {
+            const relativePath = this.getRelativePath(filePath, rootPath);
+            const dir = path.dirname(relativePath);
+            
+            if (!dirMap.has(dir)) {
+                dirMap.set(dir, []);
+            }
+            
+            dirMap.get(dir)?.push(path.basename(filePath));
+        }
+        
+        // Sort directories
+        const sortedDirs = Array.from(dirMap.keys()).sort();
+        
+        // Build the tree
+        for (let i = 0; i < sortedDirs.length; i++) {
+            const dir = sortedDirs[i];
+            const isLast = i === sortedDirs.length - 1;
+            const prefix = isLast ? '└── ' : '├── ';
+            
+            // Skip root directory
+            if (dir !== '.') {
+                treeLines.push(`${prefix}${dir}`);
+            }
+            
+            // Add files
+            const files = dirMap.get(dir)?.sort() || [];
+            for (let j = 0; j < files.length; j++) {
+                const file = files[j];
+                const isLastFile = j === files.length - 1;
+                const filePrefix = dir === '.' ? (isLastFile ? '└── ' : '├── ') : '    ' + (isLastFile ? '└── ' : '├── ');
+                treeLines.push(`${filePrefix}${file}`);
+            }
+        }
+        
+        return treeLines.join('\n');
+    }
+    
+    /**
+     * Get the path relative to the workspace root
+     * @param filePath Absolute file path
+     * @param rootPath Workspace root path
+     * @returns Relative path
+     */
+    private static getRelativePath(filePath: string, rootPath: string): string {
+        if (filePath.startsWith(rootPath)) {
+            const relativePath = filePath.substring(rootPath.length);
+            return relativePath.startsWith('/') ? relativePath.substring(1) : relativePath;
+        }
+        return filePath;
+    }
 }