Default Rendering of HTML?

My apologies for the stupid newbie question......

I've been playing with XML/XSL for a while, and haven't yet been able to 
figure this out.  The HTML code does not get rendered properly  if I create 
an element like this:

<testelement>
	<h1>Title</h1>
	<p>This is some <strong>text</strong></p>
</testelement>

I've done some research into this and suspect it's because I'm using 
<xsl:apply-templates match="/">.  As I understand things, this means I then 
need to create a template for each of the HTML tags.  Other research suggests 
that I may need to somehow mark the tag as containing CDATA, but this is a 
bit over my head at this time.

Is there a better way to reference the contents of <testelement> and fall back 
to default browser behavior for the embedded HTML?  If it helps any, I'm 
using PHP to transform my XML/XSL.

Thanks for any tips.

Shawn