This is not sed, but here is one for ex, using the snippet that you posted as the contents of the file for $file:
kitsune:~$ printf '%s\n' 'set ic
1;/="MyContact_c"/<|?<mds:insert?+;/<\/mds:insert>/-d
%p' | ex -s $file
Conclusion:
<mds:insert>
</mds:insert>
This will print the rest of the file after deleting the first instance of the section. If you want this to be done for all instances, the command line will look like this:
'set ic
g/="MyContact_c"/<|?<mds:insert?+;/<\/mds:insert>/-d
%p'
for script, , . , , , , , .
, - Vim vi, , .. ex IMHO.
Edit
C Shell , , C. :
kitsune:~% printf '%s\n%s\n%s\n' 'set ic' '1;/="MyContact_c"/<|?<mds:insert?+;/<\/mds:insert>/-d' '%p' | ex -s $file
.
: C, , .