> How is xsl:with-param supposed to work from within an xsl:apply-templates
> element?

more or less as you used it.
The thing you missed is that it only applies to the current
apply-templates
the parameter doesn't stick on recursive calls.

The apply-templates to which you applied the parameter would only have
selected your <doc>
element, and you don't have a template for doc so the default template
gets used, and that calls apply-templates with no parameter.
Normally you find yourself doing xsl:with-param name="foo" select="$foo"
to pass the value down, if down is where you want it to go.

David


 XSL-List info and archive:  http://www.mulberrytech.com/xsl/xsl-list