> Why does:
> 
> <xsl:message terminate="no">&lt;element 
> attribute=&quot;value&quot;&gt;</xsl:message>
> 
> output:
> 
> &lt;element attribute="value"&gt;
> 
> instead of (what I intend):
> 
> <element attribute="value">

Because Saxon is outputting exactly what you ask for. If you want 

   <element attribute="value">

then write

   <xsl:message><element attribute="value"></xsl:message>

Michael Kay
http://www.saxonica.com/