Ok, problem solved, by reading the FAQ properly: http://www.xmlsoft.org/FAQ.html#Installati
"Troubles compiling or linking programs using libxml2
Usually the problem comes from the fact that the compiler doesn't get the right compilation or linking flags. There is a small shell script xml2-config which is installed as part of libxml2 usual install process which provides those flags. Use
xml2-config --cflags
to get the compilation flags"
mycomputer$ xml2-config --cflags
-I/usr/include/libxml2
(http://i538.photobucket.com/albums/ff349/pluckaduck2/codeb3.png)
And for those who have trouble with setting up the linker library, the library file ends in .so, and since I am using 64 bit linux.
mycomputer$ locate libxml2.so
/usr/lib/i386-linux-gnu/libxml2.so.2
/usr/lib/i386-linux-gnu/libxml2.so.2.7.8
/usr/lib/x86_64-linux-gnu/libxml2.so
/usr/lib/x86_64-linux-gnu/libxml2.so.2
/usr/lib/x86_64-linux-gnu/libxml2.so.2.7.8
(http://i538.photobucket.com/albums/ff349/pluckaduck2/codeb4.png)
Thanks for your replies, stahta01.