Ive got a document of the following form (transforming to html). I
need
any mention of the state name (e.g. California) to be inserted where
the
[statename/] element is. I dont know how to write the XSLT
transformation
for this to work. I put below my first stab at the XSLT code, but I
know
its incomplete.

It's easier if you include -- in actual XML (the brackets are not
helpful) -- the source and your expected result.  It's not really clear
to me what you're after.