Your call to createElement
is completely bogus. You can't add attributes that way. Try this:
<?php
$xml = new DOMDocument("1.0", "UTF-8");
$xml_urlset = $xml->createElement('urlset');
$xml_urlset->setAttribute('xmlns', 'http://www.sitemaps.org/schemas/sitemap/0.9');
$xml_urlset->setAttribute('xmlns:xsi', 'http://www.w3.org/2001/XMLSchema-instance');
$xml_urlset->setAttribute('xsi:schemaLocation', 'http://www.sitemaps.org/schemas/sitemap/0.9 http://www.sitemaps.org/schemas/sitemap/0.9/sitemap.xsd');
$xml_url = $xml->createElement("url","this text");
$xml_urlset->appendChild($xml_url);
$xml->appendChild($xml_urlset);
$xml->formatOutput = true;
$xml->preserveWhiteSpace = false;
$xml->save("test.xml");
?>