Alright, here's a sample that should help. What I'm doing is returning JSON instead of XML, which I find easier to work with personally. The returned JSON is a serialized string, so we use json_decode to decode it to a PHP object, then we capture the results as an array. $arrPlaces will now house an array with two elements, which are the results.
CODE
<?php
$search = 'http://query.yahooapis.com/v1/public/yql?q=select%20*%20from%20geo.places%20where%20text%20in%20(%22m1%22%2C%20%22m2%22)&format=json';
$results = json_decode(file_get_contents($search));
$arrPlaces = $results->query->results->place;
?>
Let me know if you need anything else,
Jon