The question is a little unclear as to whether you are asking:
- Should private code be commented in general? or
- Assuming you do what to comment private code should you use XML or standard C# comments?
To comment or not
To answer the first question, needing to comment any code is a bit of a code smell. When you run into a situation that you run across code that is hard to read an needs explaining, your first attempt to solve that should be to change (usually by renaming things) so that the code is more readable. Using comments to explain an unclear method name should be a last resort.
There are some exceptions. Public methods of DLLs shared outside the solution should always be commented.
I recommend reading Robert C. (Uncle Bob) Martin's "Clean Code" book for more details on this.
XML or C# comments
In general, yes use XML comments for methods as opposed to C# comments. The XML comments show up in intellisense. Also, the XML comments are bound to the method and if you use refactoring tools to move methods the XML comments will be brought along with the method, whereas C# comments can easily be separated from the method.
One reason not to use XML comments is if you will be publicly distributing your DLL and the XML comment file. The XML file will contain comments for all your internal and private methods. So just make sure that you're OK with your customers potentially reading any of those comments on private methods.