How can I use 7z SDK (http://www.7-zip.org/sdk.html) to compress/decompress a XZ file in C# if the input/output is a file stream?
I researched this problem by myself. In fact, you can't decompress XZ files using 7-Zip SDK for C#.
From http://www.7-zip.org/sdk.html:
ANSI-C compatible source code for LZMA / LZMA2 / XZ compression and decompression
C# source code for LZMA compression and decompression
There is XZ and LZMA2 decoder source code only for ANSI-C. C# has only LZMA decoder. However you can still decode XZ in C# using third party binaries from xzutils.