SOLVED -
1) We wrapped the .vm in XML like so:
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The actual velocity code is wrapped in a CDATA tag, so it is not parsed as XML.
2) Our custom studio document class looks like this:
.png)
We originally thought we'd need custom import/export logic to strip the CData, but turns out the default behavior of %Studio.AbstractDocument is to CData escape the stream, so this is automatically taken care of:
.png)
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