I tried your example like this:

<?xml version="1.0" encoding="iso-8859-1"?>
<xsl:stylesheet version="1.0" 
xmlns:xsl="http://www.w3.org/1999/XSL/Transform"
                                                
xmlns:lxslt="http://xml.apache.org/xslt"
                                                
xmlns:redirect="org.apache.xalan.xslt.extensions.Redirec
t"
                  extension-element-prefixes ="redirect" 
>
<xsl:output method="text" omit-xml-declaration="yes" />
    <xsl:template match="/dummy">
          <xsl:text>Before redirect.</xsl:text>
          <redirect:write file="redirecteds.txt" 
method="text">
            <xsl:text>Inside redirected.txt</xsl:text>
          </redirect:write>
        <xsl:text>After redirect.</xsl:text>
        </xsl:template>
    </xsl:stylesheet>

with the xml doc you gave and it worked just fine.  It 
looks like you are one node too high in your call.

Hope it helps,

Jay Hebert

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