Your XML data is a bit weird, but if that is the way you want I suggest that you wrap the fragment in a CDATA section. That way an XML parser will ignore the fragment.
<ConfigurationFrag>
<Fragment>
<![CDATA[
</Fragment>
<Fragment ImportConfigurationFrag="../${Location}scmDefinition.xml"/>
</ConfigurationFrag>
This should make it easier to use the standard XML serializer.