I remember facing a similar issue a long while ago (the project stalled after my return from holidays, so I did not follow up after) My conclusion at that point was that the active:xslt doesn't seem to be able to serialise as text. At least some serialisation settings in the xsl:output are ignored. Chris' response helped me to set serialisation for active:xslt2. So I decided to use xslt2 and use the serialisation settings outside the XSLT to get around that Here is a reference to the original thread. Maybe it helps: forum entry good luck Geert
I'd suggest trying active:xslt2 (via the xml-saxon package). I seem to recall that it works, but I haven't checked.
Let me know if that doesn't work, and I'll take a more thorough look.