> Interesting...
>
> If I understand you correctly, you've utilized an identity
> template. Very cool. Unfortunately, and I did not specify
> this in my original post, the structure of the XML document
> is about half narrative-like and half data-like. The identity
> template would be too broad to address it.
>
> Still, that was interesting. Thanks for the feedback.

Mukul was right, just let the power of xsl:apply-templates work for you:

This XML:

<paragraph>
  <bold>Actel</bold>
  (Sunnyvale, CA) will showcase its third-generation flash-based FPGA
device, ProASIC3 (see <italic>page 105</italic>)-said to be the
industry's lowest-cost FPGA, starting at $1.50. The company's Libero
integrated design environment and broad IP offerings will also be on
exhibit. Free workshops and demonstrations will be offered throughout
the show. (Booth #920,
http://info.edu/47)
  </paragraph>

With these templates:

<xsl:template match="paragraph">
	<p><xsl:apply-templates/></p>
</xsl:template>

<xsl:template match="bold">
	<b><xsl:apply-templates/></b>
</xsl:template>

<xsl:template match="italic">
	<i><xsl:apply-templates/></i>
</xsl:template>

Produces:

  <b>Actel</b>
  (Sunnyvale, CA) will showcase its third-generation flash-based FPGA
device, ProASIC3 (see <i>page 105</i>)-said to be the industry's
lowest-cost FPGA, starting at $1.50. The company's Libero integrated
design environment and broad IP offerings will also be on exhibit. Free
workshops and demonstrations will be offered throughout the show. (Booth
#920,
http://info.edu/47)
  </p>


cheers
andrew