The way you update the XML document is to write a bit of Javascript that responds to the button click and fires off an XSL transformation to do the update, creating a new document. You can use the Microsoft API or the Sarissa cross-browser API. Writing the XML document back to filestore is more difficult. You don't say whether it's client filestore or server filestore, but either way, there are security issues. This isn't directly an XML problem and it's not an area where I claim any expertise. I would normally assume some kind of servlet, ASP page, or similar on the server.
Michael Kay
http://www.saxonica.com/
Author, XSLT Programmer's Reference and XPath 2.0 Programmer's Reference