I just finish a project to do the same request like your req.
My suggestion is:
use to files, [1] for frontend, make ajax call to sen back url; [2] receive ajax call, and get file content from url, then parse xml/html
- in that way, it can avoid your php dead in some situation
for php, please look into [DomDocument] class, for parse xml/html, you also need [DOMXPath]
Please read: http://www.php.net/manual/en/class.domdocument.php
No matter what you do, I suggest you always archive the data in you local server.
So, the process become - search your local first, if not exist, then grab from remote also archive for - 24 hrs.
BTW, for your client-side parse idea, I suggest you do so. jQuery can handle both html and xml, for HTML you just need to filter all the js code before parse it.
So the idea become :
ajax call local service
local php grab xm/html (but no parsing)
archive to local
send filter html/xml to frontend, let jQuery to parse it.