I think this may be a bug. The following XSL works:
<xsl:stylesheet xmlns:xsl="http://www.w3.org/1999/XSL/Transform"
version="1.0">
<xsl:output method="html" media-type="text/html" encoding="utf-8"/>
<xsl:template match="/products">
<div><xsl:include href="file://path.xsl"/></div>
</xsl:template>
</xsl:stylesheet>
But this doesn't...
<xsl:stylesheet xmlns:xsl="http://www.w3.org/1999/XSL/Transform"
version="1.0">
<xsl:output method="html" media-type="text/html" encoding="utf-8"/>
<xsl:template match="/products">
<xsl:include href="file://path.xsl"/>
</xsl:template>
</xsl:stylesheet>
The only differnce is the <div> surrounding the include... ??
Cheers,
--Jim