Unable to mix xsl:element and xsl:choose

I am unable to mix xsl:element and xsl:choose tags. In the following code I
am just trying to display a different image based on the value of "state".
I am not sure what is missing here. I am using MSXML in IE 5.5.

            <font class="Green">
            <xsl:element name="a">
              <xsl:attribute name="href">

/servlet/com.commercequest.enet.status.web.StatusQuery?report=Document
Detail&amp;uuid=<xsl:value-of select="@uuid"/>
              </xsl:attribute>
     <xsl:choose>
              <xsl:when test="state='IN_PROGRESS'">
              <img BORDER="0" SRC="/status/media/images/move.gif" WIDTH
="16" HEIGHT="16"/><xsl:value-of select="state"/>
              </xsl:when>
              <xsl:otherwise>
         <img BORDER="0" SRC="/status/media/images/go.gif" WIDTH="16"
HEIGHT="16"/><xsl:value-of select="state"/>
              </xsl:otherwise>
             </xsl:choose>
            </xsl:element>
            </font>

Any help is appreciated.

thanks
-- bharat
---------------------------------------------------------------
Bharat Chintapally
CommerceQuest Inc.
bharat.chintapally@xxxxxxxxxxxxxxxxx
New Phone # 813-639-6478
---------------------------------------------------------------




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