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Is there a size limit on data.xml files?
Is 400k a problem? will it the user see a blank screen while its reading the file?
I can't tell the exact max size. And the size in kilobytes doesn't matter, the number of movies/areas matters. The slower the computer is the longer user will wait untill the data will be parsed. You should try and decide how big your file can be.
I would like to have all the data ini one file which has approximately:
30 areas (active apart form the other countries)
500 movies (with icons) and description text (~200 words) with image
about 50 labels
can you see any problem with a file that big?
I think it should work, but you should try :)