>  Actually I want ONLY to remove a path from this tag,
> 
> <FontFace>D:\Work\Phase III\Executables\Fonts\TIMESNRO.FNT</FontFace>
> 
> In final xml file I want to appear it as this,
> 
> <FontFace>TIMESNRO.FNT</FontFace>
> 

In XSLT 2.0

<xsl:template match="FontFace">
  <xsl:value-of select="tokenize(., '\\')[last()]"/>
</xsl:template>

In XSLT 1.0 you need to use recursion. You write a recursive named template
that takes the filename as input. If the filename contains "\", then make a
recursive call, supplying substring-after($in, '\') as the parameter value.
If it doesn't contain "\", return the input value as the result.

Michael Kay
http://www.saxonica.com/