In XSLT 2.0 you can do:
<xsl:value-of select="replace(paragraph, '\n', '')" />

Or perhaps (not sure this is more complete):
<xsl:value-of select="replace(paragraph, '&#xA;|&#xD;', '')" />

Hi,

Is there any way to remove line breaks without deleting the whitespace
in-between elements? For example, suppose you started with the
following XML:

<paragraph>
    <sentence>Some words are <i>italicized</i> and some words are in
<b>bold</b>.</sentence>
    <sentence>Some words are <u>underlined</u>.</sentence>
</paragraph>

I'd like to remove the line breaks, but otherwise retain any existing
whitespace between elements, resulting in the following XML:

<paragraph><sentence>Some words are <i>italicized</i> and some words
are in <b>bold</b>.</sentence><sentence>Some words are
<u>underlined</u>.</sentence></paragraph>

I'm trying to avoid sentences whose contents run together when I
process the text.

Thanks!

Mark