> So why does the values of the attributes get print out??

well you have 
  <xsl:apply-templates select="@*|node()"/>
so templates will be applied to attribute nodes.

the default template for attributes is

<xsl:template match="text()|@*">
  <xsl:value-of select="."/>
</xsl:template>


which converts attribute nodes to their string value....


David

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