XLEFF is the acronym of XML Layout Engine For Flash, which is reminiscent of what XLEFF is: an XML layout engine, designed to be included in an SWF file.
The XML Layout Engine concept
An XML Layout Engine is a software functionality that allows you to generate a component-based user interface starting from an XML description.
A concrete example will clarify what XML Layout Engines do: let's consider the case of creating a Flash user interface made of one instance of the Button component only, as shown in the following figure:

In our example the stage size is 300x200 pixels and the Button instance is placed at (X: 100, Y: 89) as highlighted by the next figure:

Flash developers currently have two options to create a component-based user interface like that:
Creating the Button instance in the authoring environment is a manual process that requires dragging the component on the stage and then adjusting its position and size, if needed.
The following example shows how the ActionScript code generating the same Button instance may look like:
var myButton:Button =
createClassObject(Button, "myButton", getNextHighestDepth(),
{_x:100, _y:89});
An XML Layout Engine, quite simply, provides a third option by allowing the creation of the same user interface via an XML description similar to the following snippet:
<button name="myButton" x="100" y="89" />
First conclusion
The three options considered in this article are very different from each other. The second part will explain what are the exclusive benefits deriving from the approach supported by XLEFF.
The Flash authoring environment comes with a hidden treasure.
Apart from the powerful components that can enable the development of Rich Internet Applications, it also includes the source code of the whole component architecture that you can use to learn how to customize the existing components and how to reuse its rich functionality, with the help of this essential book from the AdvancED series of friends of ED.