selecting not(node()) not working as I expect it to

Hello everyone,

For some reason (Monday perhaps) I'm having a very difficult time with
a very simple concept. I'm simply trying to apply all templates except
a node and then apply that node and it's children. I've done this
before with no issue,, now, well I'm having issues.

xml

<?xml version="1.0"?>
<root>
				<para>This is a paragraph</para>
				<para>This is a paragraph
					<list mark="bull">
						<listitem>This is a list</listitem>
						<listitem>This is a list</listitem>
					</list></para>
				<para>This is another paragraph</para>
</root>

xsl

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

<xsl:template match="/">
	<xsl:apply-templates/>
</xsl:template>

<xsl:template match="para">
	<p><xsl:apply-templates select="*[not(self::list)]"/></p>
	<xsl:apply-templates select="list"/>
</xsl:template>
<xsl:template match="para/text()">
	<xsl:value-of select="."/>
</xsl:template>
<xsl:template match="list">
<ul>
	<xsl:apply-templates/>
</ul>
</xsl:template>
<xsl:template match="listitem">
<li><xsl:apply-templates/></li>
</xsl:template>

expected output

<p>This is a paragraph</p>
<p>This is a paragraph</p>
<ul>
  <li>This is a list</li>
  <li>This is a list</li>
</ul>
<p>This is another paragraph</p>

what I'm getting

				<p/>
				<p/><ul>
						<li>This is a list</li>
						<li>This is a list</li>
					</ul>
				<p/>

any thoughts?