I need to make a cross-reference to a paragraph in another chapter (ie. different file). I am not seeing how this is done.
I am assuming that you want a cross-reference from one (Chapter1.XML) chapter to an another (Chapter2.XML) chapter.
You can try something like this.
<para>Refer to <xref srcfile = "Chapter2.XML#crossref1 format = "Link"/>.</para>
<para id = "crossref1">Link</para>
The reference pod opens usually on the right.