Since the WITH clause goes before the query, the example above would be:
with xmlnamespaces('http://ww.w3.org/TR/html4/' as h)
select getDate() as '@timestamp',
( select name as '@name', xtype as 'data/@xtype'
from sysobjects
for xml path('object'),type
)
for xml path('root')
(The BOL, especially http://msdn.microsoft.com/en-us/library/ms177400.aspx, has more, and better, examples)
--Adam