string filePath = @"c:\res.xml"; // whatever
var xDocument = XDocument.Load(filePath);
String one = (xDocument.Root.Nodes().ElementAt(0) as XElement).Value;//< test >
String two = (xDocument.Root.Nodes().ElementAt(1) as XElement).Value;//< test >
Console.WriteLine(one == two); //false
Console.WriteLine(String.Format("{0} {1}", (int)one[0], (int)two[0]));//160 32
You have two different strings, and  
is there, but in unicode format.
One possible way to get things back is manually replace non-breaking space to " "
String result = one.Replace(((char) 160).ToString(), " ");