Your xml format is not very well organized. Keys and children are not in any relation except positional, so it is almost impossible to relate them.
You should make children of the key to appear WITHING the parent key, not side by side.
Closest I could get is:
declare @ClientInfo xml =
N'<?xml version="1.0" ?>
<Root>
<key>29</key>
<children>
<key>500</key>
<children>
<key>3000</key>
<children>
<key>70000</key>
</children>
</children>
</children>
<key>50</key>
<children>
<key>600</key>
<children>
<key>3600</key>
<children>
<key>9862</key>
</children>
<children>
<key>9863</key>
</children>
<children>
<key>9864</key>
</children>
</children>
</children>
<key>70</key>
<children>
<key>900</key>
<children>
<key>3700</key>
<children>
<key>7862</key>
</children>
<children>
<key>6863</key>
</children>
<children>
<key>5864</key>
</children>
</children>
<children>
<key>5400</key>
<children>
<key>7892</key>
</children>
<children>
<key>6563</key>
</children>
<children>
<key>5464</key>
</children>
</children>
</children>
</Root>
'
SELECT
ParentID = c.x.value('../key[1]', 'int'),
ChildID = c.x.value('key[1]', 'int')
FROM @ClientInfo.nodes('//children') c(x) -- "//children" means "children nodes at all levels"
GO
The result is:
ParentID ChildID
----------- -----------
29 500
500 3000
3000 70000
29 600
600 3600
3600 9862
3600 9863
3600 9864
29 900
900 3700
3700 7862
3700 6863
3700 5864
900 5400
5400 7892
5400 6563
5400 5464
(17 row(s) affected)
If you change xml structure as suggested, similar construction would work perfectly.
Since preceding-sibling is not supported by sql2008, you could look into >> and << xml operators that I'm not very familiar with.
Some examples are here:
and here