> IOW, can an XSLT processor generate and XSLT file and then launch
> another transform recursively?

Not without use of processor extensions, such as

saxon:compile-stylesheet()
http://www.saxonica.com/documentation/extensions/functions/compile-styleshee
t.html

and saxon:transform()
http://www.saxonica.com/documentation/extensions/functions/transform.html

But of course you can also do it from other languages such as Java, or a
pipeline processing language.

Michael Kay
http://www.saxonica.com/