>       ValueXml = "<?xml version='1.0'?>\n";
> 
> Even though the PI is in quotes, I get the error.  My xsl file is below.
> My question I guess, is how do I embed an xml PI in an xsl stylesheet?

quotes " do not have any special meaning to an XML parser in that position.
It isn't a PI it's the XML declaration and has to appear as the first
(or third if using a byte order mark) byte of the file.
So your input isn't well fomed XML.

Probably you want &lt;?xml .....

David




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