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I have not yet been through the whole documentation process, but I will
have to document Web Services soon.
What I have found so far is that if your developers are using C# in
VisualStudio you can have them add xml comments to the code and export
them in a separate XML file. Then you can just use XSL to format the
content.
I have already organised for developers to use the xml tags for
comments. I will only have to review them for publishing later on. I
believe this process will work well because as developers modify the
code over time they will be able to modify the comments also, all I will
have to do is run a diff on files to see what has changed in code and
comments, and then review that or add what is missing.
One of our developers has a tool that transforms the XML comments into
some interesting format for his own use. I believe it's called ndoc. If
you like the output format, it seems to work pretty efficiently.
Here is a link, in case you would like some more information on tagging
comments and extracting them for documentation: