Replace string in encoded xml in element tag

Hi All,
    I have a scenario like this
    <application>
        <diagram attr="value">&lt;Diagram&gt;&lt;Node id="n1"
name="name1"/&gt; &lt;/Diagram&gt;</DIAGRAM>
    </application>
     The 'diagram' tag has encoded xml. I want to replace a string inside
this encoded xml.
     How to replace 'name1' to 'name2'?
    Thanks and regards,
R. Pooran Prasad
Itreya Technologies Pvt Ltd.,
Mail: pooran(_dot_)prasad(_at_)itreya(_dot_)com
Phone(Off) : +91 80 5200179 Extn: 51
Mobile:  +91 98860 29578


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