xsl:include still a problem..

Ok..I don't know why, but for what ever reason, I can not get the XSL
included files to work. No matter what I do, it keeps looking in c:\orion\
for all my files. If I do

<xsl:include href="/path/page.xsl"/>

It looks for c:\orion\path\page.xsl

If I put the include file in the SAME path as the XSL page trying to include
it, which according to the spec should work, it still looks in c:\orion
folder. I am not sure why it keeps look in that folder, instead of the
web-app root. I am now using Saxon 6.2, and still seem to get this problem.
Is there something that has to be set in every XSL page (or maybe once to
the saxon library before any XSL processing is done) to tell it to use the
default web-app?

I have NO other saxon.jar or xalan.jar anywhere in my system. I am not sure
why if saxon.jar is in my path/www/web-inf/lib dir, it keeps on going back
to the c:\orion dir.

Thanks for any ideas on what is wrong.

 XSL-List info and archive:  http://www.mulberrytech.com/xsl/xsl-list