Server Side use of xsl document function fails.Why?

I have an xslt stylesheet that uses the xsl document(uri) function to merge
data (from a sql 2000 template file that returns the results of a database
query as XML) into an existing XML document during transformation.

When the xsl file is applied to the xml file at the client side (using xml
4.0, IE6) this works fine. 

When the same operation is done server side (using xml4.0, ASP, IIS5 and the
transformnode method), it fails with the message "No data is available for
the requested resource."

Should this work? What am I doing wrong?
Is this a manifestation of the problems that existed in xml3.0 when trying
to do server-to-server http requests for xml files?

Dave



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