<POINT>
     <xsl:for-each select="//Polygon">
           <xsl:attribute name="x">

this makes a single POINT element and then repeatedly sets it x
attribute for every Polygon element in the source. Each time it sets it
to   <xsl:value-of select="Point/@x"/> which selects all the x
attributes of Point children of the current node and then discards all
but the first, and takes its value.

So the end result is that POINTS gets an x attribute which comes from
the first Point child of the last Polygon in the document.

I think you just want:

<xsl:template match="Polygon">
  <RING>
   <xsl:copy-of selct="Point"/>
  </RING>
</xsl:template>

David

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