I am using a PHP script to parse XML feed from an external site to mine. However, the code is giving errors lilke :

Warning: file_get_contents() [function.file-get-contents]: URL file-access is disabled in the server configuration in /www/vndv.com/a/r/b/arbitadd/htdocs/parser.php on line 7

The file is hosted at the address http://arbitadd.vndv.com/parser.php

Can anybody suggest a way out?

Sorry the only way around this is to pay extra money to get that feature enabled for your site. I don't know the details about it since it's only hear-say right now.

This would be a pain, but you could have the client grab the file with javascript, pass it to your server, and then parse it.