The template doesn't insert an asterisk if the indexterm text breaks
on a line (see the following), but I'll continue working on that.

<indexterm>multi-tenancy<indexterm>components*assigned
to*the*config*domain</indexterm></indexterm>

Mark Peters wrote:

> Input

> <indexterm>domains<indexterm>and components</indexterm></indexterm>

> Output

>  <indexterm>
>     old[domainsand components]
>     new[domainsand&amp;components]
>   </indexterm>

> What would I have to do to retain the nested indexterm elements?

Something as the following if I understand correctly your problem:

    <xsl:template match="@*|node()">
      <xsl:copy>
        <xsl:apply-templates select="@*|node()"/>
      </xsl:copy>
    </xsl:template>

    <xsl:template match="indexterm/text()">
      <xsl:value-of select="replace(., ' ', '*')"/>
    </xsl:template>

Regards,

--drkm