> 1. How is the best way to create a new text file (or Excel CSV file)
> using an XSLT file?

In XSLT2 use xsl:result-document

In XSLt1 theer is no standard way, but most systems have an extension to
write multiple files, eg saxon:output xalan:redirect etc

> 2. how is the best way to create a line-feed? 
<xsl:text>&#10;</xsl:text>
actually you don't need to do the lin efeed as a reference, you can do
<xsl:text>
</xsl:text>

but I find that it shows up more (and less likely to get messed up when
I indent the stylesheet) if you "hide" the newline in the stylesheet.

David

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