CDATA question

Hi,
I have the following XML structure, and the extract from the XSLT script
which is not producing the desired output. What would be the best way to
get desired output?
 
Thanks,
 
-----------------------------
.................
<distractor>
    <para>Select the<emphasis>GPO Part Additional Info</emphasis> link
in the <emphasis>Navigation</emphasis>screen</para>
</distractor>
......
-----------------------------
 
XSL file:
------------------------------------------------------------------------
--------
<xsl:....cdata-section-elements="mattext feedback">
............
<xsl:template match="distractor | answer">
 <xsl:choose>
 <xsl:when test="(ancestor::assessment[@teds-type = 'M']) or
(ancestor::assessment[@teds-type = 'T']) or
(ancestor::assessment[@teds-type = 'U'])">
 <response_label>
  <material>
   <mattext texttype="text/html">
                <xsl:apply-templates/>
   </mattext>
  </material>
 </response_label>
 </xsl:when>
  </xsl:choose>
</xsl:template>

<xsl:template match="para">
 <xsl:apply-templates/>
</xsl:template>
 
<xsl:template match="emphasis">
 <b><xsl:apply-templates/></b>
</xsl:template>
 
------------------------------------------
 
Current output: 
<material>
<mattext texttype="text/html"><![CDATA[Select the ]]><b>GPO Part
Additional Info</b><![CDATA[ link in the ]]><b>Navigation</b><![CDATA[
screen.]]></mattext>
</material>
 
Desired Output
<material>
<mattext texttype="text/html"><![CDATA[Select the <b>GPO Part Additional
Info</b> link in the <b>Navigation</b>screen.]]></mattext>
</material>
 
---------------------------------------------