> Michael,
> It's for a proprietary system. I can't figure out the logic 
> either but it's how they require it. I think they do this 
> because the content could contain XML tags that will be 
> parsed separately. Therefore they want the content wrapped in 
> a CDATA tag like shown. Is there any way I can do this?
> 

Yes, as already explained:

> >>
> >> Use the cdata-section-elements="field" attribute on the xsl:output 
> >> elements.
> >>

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