Namespace resolution

Can someone explain / point to resources that explain how a xsl namespace
is resolved and accessed by the Transformer when using a Custom component
for Business Logic /data .  Not ADO .

for eg :

<xsl:stylesheet version="1.0" xmlns:xsl="
http://www.w3.org/1999/XSL/Transform"
                  xmlns:IBusinessFunctions="urn:IBusinessFunctions" >

...
...
     <xsl:element  name="someElement">
          <xsl:value-of select="IBusinessFunctions:TestFunction1()"/>
     </xsl:element>
...
....
</xsl:stylesheet>

The deepest technical detail will be greatly appreciated.

thanks





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