When you first create a configuration file in your Integration Services project, the XML contents of the file are just laid out in one long line. This makes reading and/or modifying this file more challenging than it needs to be.
There is an easy way to format your file to alleviate this issue. In BIDS, go to File/Open/File, as in the image below:
Browse to your configuration file and select it to open within BIDS.
My brand new configuration file looks like this image below:
You see that the contents are all on one line. Bleh.
To fix that, you can go to Edit/Advanced/Format Document, as shown below:
I have done that to my config file and now it looks like this:
As you can see, this is much easier to deal with. Just save this document and close it. Now, even when you open it in Notepad, that formatting persists.
This little trick can make dealing with your configurations files a bit easier.