> I'm not familiar with the restrictions of 1.0, but could you 
> not simply do this?
> 
> <xsl:template match="/">
>   <xsl:variable name="merged-docs">
>      <xsl:apply-templates select="files"/>
>   </xsl:variable> 
> 
>  ... Do what ever with $merged-docs from here....
> </template>

In XSLT 1.0 you need the xx:node-set() extension in order to do anything
useful with $merged-docs (the infamous result-tree-fragment restriction).

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