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http://cocoon.zones.apache.org/daisy/documentation/478.html

Document ID: 478
Name: A Simple Example
Branch: main
Language: default

Created by: Bruno Dumon
Created on: 11/18/05 10:20:55 AM
Visibility: public

It seems like the XSL is not reacting on the template tags and just copying 
text nodes through or something like that.

You might want to check the cocoon error log (in WEB-INF/logs) to see if it 
reports some XSL related error.

Are you using Cocoon 2.1.8? The example given here is intended to work with 
that release.