despite the subject line and your problem description, I don't think
your problem is related to parsing.

You are using  encoding="iso-8859-1"/
and say you want baker’s but if you had a #8217 in your result
then it would appear that way, as it can not be firectly encoded as a
iso-8859-1 character.

Your input has ' so it appears that you want to replace
#0027 by #8217, that is
APOSTROPHE by RIGHT SINGLE QUOTATION MARK
which you can do by
<xsl:template match="text">
<xsl:value-of select="replace(.,'&#0027;','&#8217;')"/>


or by using character maps.

David

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