> Apologies for being dense and dragging this on, but I seem to 
> have a fundamental misunderstanding. Can you or someone else 
> explain where the whitespace is with regard to the 
> xsl:value-of in something like:
> 
> <script xml:space="preserve"/>
>   <xsl:variable name="my-var">
>     <xsl:choose>
>       <xsl:when test="true()">1</xsl:when>
>       <xsl:otherwise>2</xsl:otherwise>
>     </xsl:choose>
>   </xsl:variable>
>   var myvar=<xsl:value-of select="$my-var" separator=""/>; </script>

I have marked potential significant whitespace with an X:

<script xml:space="preserve"/>X
XX<xsl:variable name="my-var">X
XXXX<xsl:choose>
      <xsl:when test="true()">1</xsl:when>
      <xsl:otherwise>2</xsl:otherwise>
    </xsl:choose>X
XX</xsl:variable>X
XXvarXmyvar=<xsl:value-of select="$my-var" separator=""/>;X</script>
> 
> To my eyes, there is no whitespace around the xsl:value-of 
> and the application is *not* taking me at my word.

I expect the whitespace you are unhappy with is the whitespace that is part
of the variable value $my-var, generated before and after the xsl:choose
instruction.

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