[no subject]

So, in the example below, I would expect the "&" to output as "&" 
because it is in the source XML file and I would expect that a character 
reference created in the XSLT template would output as the reference. 
However, the opposite seems to be true.

Example:

<paragraph>Here is some text &amp; stuff made up of so-called 
<quote>words</quote>.</</paragraph>

I used the below template:

<xsl:template match="quote">
  &#8220;<xsl:apply-templates/>&#8221;
</xsl:template>

I get this mess in place of the quotes:

(bthe <i>O'Hara</i> suitb)

but I get "&amp;" in the output