I'm not sure if embedded stylesheets work in IE(especially if you
haven't declared the id to be of type ID) however if they did I would
expect that your styleshet would just produce the heading and the
paragraph NEWS from your template.

You have <xsl:for-each select="news/day">
but this will return nothing as it will execute on the root node of the
document and the root node soesn't have a child node "news".
you will need 
<xsl:for-each select="root/news/day">

There is a _lot_ of difference between a root node, and an element node
that happens to be called root, even if that element is the top level
element in the document tree. 

David

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