Over oiling will cause the malfunction. It has been my experience that the XD will gobble up any ammo I've put through it. Some may shoot better (tighter groups) than other types, but it will feed, fire, extract all ammo just fine (all ammo that I have tried). I tend to think that the ammo is usually not the problem....maybe if you were shooting a competition pistol built around a certian load, but with a stock XD, you should have minimal ammo related problems. A few questions:
1) is the pistol brand new?
2) have you ever had this problem before? was it with this specific ammo?
3) are all other things constant other than the oiling?
I may be overstating the obvious, but when oiling make sure that the chamber and extractor/ejector have only the thinnest coat of oil. The extractor won't do you any good if it can't get a grip on the case!