Embarrasing it is.

Found the problem after speedreading af few pages of M. Kay's XSLT
Programmers Reference.

The transformation:
<xsl:attribute name="@name"><xsl:value-of select="."/></xsl:attribute>

Should be:
<xsl:attribute name="{@name}"><xsl:value-of select="."/></xsl:attribute>

/Thomas