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In the dnprdnext, the recommended practice is to create System.Xml.XmlReader instances using the System.Xml.XmlReaderSettings class and the erload:System.Xml.XmlReader.Create method. This allows you to take full advantage of all the new features introduced in the dnprdnshort. For more information, see Creating XML Readers.
A networked XML document is comprised of chunks of data aggregated using various W3C standard inclusion mechanisms and therefore contains nodes that come from different places. DTD entities are an example of this, but this is not limited to DTDs. The base URI tells you where these nodes came from. If there is no base URI for the nodes being returned (for example, they were parsed from an in-memory string), String.Empty is returned.