>         <xsl:variable name="x" select="ancestor::x"/>
>         <xsl:value-of select="$x[1]/@n"/>

> What is the expected result? Is it "1" or "2"?

  I think this is pretty clear. The ancestor:: axis is a reverse 
  axis (the first ancestor of a node is its parent), therefore 
  the expected answer is 2.

The axis used to select a node set is irrelvant, if you filter a node
set with [1] (which isn't the same as using the predicate [1] in a step)
Then the node set is sorted into document order and the 1st node is
taken. If you expect 2 then the expected answer is 2, but nevertheless
you'll get 1.

David



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