> 1) Is there any concept of incrementing variables in XSLT. 
no.

> 2) I am using a xslt processor, 'xt' (by  james clark) and it doesnt seem to like >= or <= operators

>= should wourk without problems, to write <= in XML you have to use
>&lt;=

Note James' original release of xt did not implement the full XSLt spec
(no keys for example) although there has been an updated release more
recently. 

David

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