cascading tags

Hi everybody,
I am a newbie in XSLT.
The following is my problem:

I have an XML inputfile that I want to transform into another XML file:

a scratch of the inputfile:

<bulletlist>
    <item>there are two different levels of compliance for XML documents:
         <numberedlist>
              <item>the well-formedness of an XML document</item>
              <item>the validityof an XML document</item>
         </numberedlist>
    </item>
</bulletlist>

I would like to transform this file into:

<p>there are two different levels of compliance for XML documents:
<p>the well-formednessof an XML document</p>
<p>the validityof an XML document</p>

If I use the following transformation codes

<xsl:template match="bulletlist/item">
  <p><xsl:text>- </xsl:text>
  <xsl:apply-templates/></p>
</xsl:template>

<xsl:template match="numberedlist/item">
  <p><xsl:number value="position()" format="1. "/><xsl:value-of
select="text()" /></p>
  <xsl:apply-templates/>
</xsl:template>

I get

<p>- there are two different levels of compliance for XML documents:
     <p>1. the </p>the well-formedness of an XML document
     <p>2. the </p>the validity of an XML document</p>


which is an invalid document.
How do I have to change my statement, so that it works.

Thanks for your help,
  Andreas


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