I need to make an XSLT stylesheet that takes XML file as input.

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you could use notepad, but use something that highlights the xml and that verify against the xslt schema.

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You can use any text editor to make the stylesheet but Im afraid I cant help byond that other than to throw you at the w3c ;o(

I tend to take the xml file and use it in a server side language like php or asp.

However, this being said... take a peek at Altova's XMLSpy. It may have something you can use.

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