Hey David, I'm seeing some really bad performance while attempting to transform a 30 megabyte xml file. As a benchmark, I tried running just the identity transformation against my file in both .NET 2.0 and in Xalan. .NET took ~3 seconds...I killed the Xalan after 25 minutes. I didn't try digging into the Xalan code at all, but obviously some algorithm isn't scaling very nicely.
Rob Conde