I've been struggling with this for hours and I'm not getting anywhere
and I'm behind on an already delayed deadline. Any help would be most
appreciated.

<ul>
 <li>File Review Process for Part C and Part B, including specific transition
items;</li>
 <li>Regional Data Profiles using transition file review data;</li>

 <li>Regional Corrective Action Plans (CAPs); and/or</li>
 <li>Quality Services Reviews</li>
</ul>

<p>More information on Iowas monitoring system can be found at <a
href="http://www.iowaccess.org/educate/">www.iowaccess.org/educate/</a></p><ul
class="pagetopage_nav ptop_botm">

<ul>
 <li><em class="contentterm">File Review Process</em> for Part C and Part B,
including specific transition items;</li>
 <li><em class="contentterm">
Regional Data Profiles/em>
using transition file review data;</li>

 <li><em class="contentterm">
Regional Corrective Action Plans/em>
(CAPs); and/or</li>
 <li>Quality Services Reviews</li>
</ul>

<p>More information on Iowas monitoring system can be found at <a
href="http://www.iowaccess.org/educate/">www.iowaccess.org/educate/</a></p><ul
class="pagetopage_nav ptop_botm">

Where the highlighted terms are chosen from a xml nodes that looks like
this:
<glossary id="22"><word><![CDATA[File Review Process]]></word>
<definition><![CDATA[Iowa conducts file reviews using a web-based
monitoring system called I-STAR (Iowa&rsquo;s System for Achieving
Results). File reviews are conducted yearly on approximately 10% of all
IFSP files. This information is used to cite Regions for noncompliance.
]]></definition></glossary>
<glossary id="23"><word><![CDATA[Regional Data Profiles]]></word>
<definition><![CDATA[From the transition questions in I-STAR and the
Exit Code data collected from the Information and Management System
(IMS), Iowa creates regional data profiles. Examples are found on slides
31 and 34. This information is used to cite Regions for noncompliance.
]]></definition></glossary>
<glossary id="24"><word><![CDATA[Regional Corrective Action Plans]]></word>
<definition><![CDATA[Based on noncompliance and regional drill down
data, each Region is required to develop and submit a Corrective Action
Plan with specific steps and timelines to correct the noncompliance
within one year. The Department reviews and approves the Corrective
Action Plans.]]></definition></glossary>

<xsl:template name="replaceglossary">
<xsl:param name="text"/>
<xsl:param name="glossary"/>
<xsl:param name="ordinal" select="1"/>

<xsl:variable name="temp">
<xsl:choose>
<xsl:when test="$ordinal = count($glossary)">
<xsl:value-of select="$text"/>
</xsl:when>
<xsl:otherwise>
<xsl:call-template name="replaceglossary">
<xsl:with-param name="text" select="$text"/>
<xsl:with-param name="glossary" select="$glossary"/>
<xsl:with-param name="ordinal" select="$ordinal+1"/>
</xsl:call-template>
</xsl:otherwise>
</xsl:choose>
</xsl:variable>

<xsl:value-of disable-output-escaping="yes"
select="substring-before($temp, $word)"/>
<xsl:element name="em">
<xsl:attribute name="class">
<xsl:text>contentterm</xsl:text>
</xsl:attribute>
<xsl:value-of disable-output-escaping="yes" select="$word"/>
</xsl:element>
<xsl:value-of disable-output-escaping="yes"
select="substring-after($temp, $word)"/>

PS I'm using the PHP xsl transformer which apparently does not support
fn:replace() :P