simple xsl:processing-instruction question

MSXML  Installed
MSXML2  Installed
MSXML2 v2.6  I
[g

[V T
[o
[MIuWFNgp
l,E+\9q
B
MSXML2 v3.0  Installed
MSXML2 v4.0  Installed
MSXML2 v5.0  I
[g

[V T
[o
[MIuWFNgp
l,E+\9q
B
MSXML2 v6.0  I
[g

[V T
[o
[MIuWFNgp
l,E+\9q
B
Mode  Replace V3

<?xml version='1.0'?>
<?xml-stylesheet type="text/xsl" href="pi.xsl" ?>
<customers>
<customer>
 <name>James Smith</name>
 <address>123 Elm St.</address>
 <phone>(123) 456-7890</phone>
</customer>
<customer>
 <name>Amy Jones</name>
 <address>456 Oak Ave.</address>
 <phone>(156) 789-0123</phone>
</customer>
</customers>

<?xml version='1.0'?>
<xsl:stylesheet version="1.0"
xmlns:xsl="http://www.w3.org/1999/XSL/Transform" >

<xsl:output method='xml' version='1.0'/>
<xsl:template match="/">
<xsl:pi name="xml-stylesheet">
<xsl:text>type="text/xsl" href="styles.xsl"</xsl:text>
</xsl:pi>
<xsl:apply-templates />
</xsl:template>

<xsl:template match="@* | *">
  <xsl:copy>
    <xsl:apply-templates select="@* | node()"/>
  </xsl:copy>
</xsl:template></xsl:stylesheet>

<?xml version='1.0'?>
<xsl:stylesheet version="1.0"
xmlns:xsl="http://www.w3.org/1999/XSL/Transform" >

<xsl:output method='xml' version='1.0'/>
<xsl:template match="/">
<h1>hello</h1>
</xsl:template>