Handling linebreaks

Currently I have an XML file with an element similar to the following:

<CONTENT>text text text text
                       text text text text

                       text text text text
                       text text
</CONTENT>


What is the best way to preserve the linespacing when I transform this XML
file to HTML?

a) Should I insert tags to associate with the linebreaks when building the
XML content?  If I do this, how would I know when I run into those tags when
I use <xsl:value-of select="CONTENT">?

b) Or should I sent ascii characters (such as &#160; for whitespace) and if
so, how do I do it???

c)  Some other option??

Jerry
jerry@xxxxxxxxxxx






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