You got chopped!
the normal way to do this is with lots of template match's
one for each tag you may find, and ba da bing... it becomes html.
Since the xml is a classic rss feed, you should be able to find some examples on google code search
http://www.google.com/codesearch?q=lang%3Axsl+rss+to+html&hl=en&btnG=Sea rch+Code
I like
http://www.google.com/codesearch?hl=en&q=+lang

sl+rss+to+html+img+show: tPyWu_HbEGk:6XGVzkUVwkE:Lod1xOjIDqY&sa=N&cd=13&ct= rc&cs_p=http://www.borho.net/news/src/phpNewsfork_0_1.tar.gz&cs_f=rss.xsl#a0
but I would do the entire transform with just template matches.