I noticed that XALAN 2.7.1 makes a difference between

<when>
  x
</when>

(Result *includes* line breaks and blanks)

you're confusing me: You wrote that whitespace shall be ignore UNLESS xsl:text is used, but in fact, XALAN 2.7.1 does *not* ignore the white space, but actually INCLUDES it (check my 'Result...' comments below the examples)!

Or did I misunderstand what you liked to say?

	Martin Honnen
	http://msmvps.com/blogs/martin_honnen/