> contains(.,

pases the current node to a string function, so the function argument is
the string value of the node, which is all the character data of the
descendants. 

You want something like

<xsl:template match="*">
      <xsl:if test="contains(text(),'@')">@ found in <xsl:value-of
select="name(.)"/></xsl:if>

or

<xsl:template match="text()">
      <xsl:if test="contains(.,'@')">@ found in <xsl:value-of
select="name(..)"/></xsl:if>

David

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