> So what "bad" could happen if I put
> <xsl:output method="text"/>
> insated of
> <xsl:output method="html"/>.
> Actually what else is different?

Suppose your result tree contains a document node, and element node named A,
and a text node containing an ampersand.

With method="xml" this will be output as

<?xml version="1.0" encoding="..."?>
<A>&amp;</A>

With method="text" it will be output as

&

You haven't actually told us what you are trying to achieve.

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