> Bit of a newbie question really, but is Saxon the only XSLT 2.0
> transformation engine available? 

There are two others, Colin Adams' Gestalt XSLT, and Altova's XSLT 2.0
processor.

Saxon, of course, is the best.
  
> ps, I think I'm right in thinking Xalan and XT are all XSLT 1.0?

Yes.

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