>  I'm using XSL 1.0
any partucular reason for that? for a new project why you don't you use
xslt2. especially as that would make it much easier in this case.


 > <FAULT-REF FAULTS="PF01 PF02 PF03 PF04 PF05 PF06 PF07 PF08 PF09 PF10
 > PF11">

in xslt2 that's just

<xsl:for-each select="tokenize(@FAULTS,'\s+)">
 <statemanipulation>
    <variableref name="{.}"/>
        <fault fault-code="{.}" fault-state="ok"/>
</statemanipulation>
 </xsl:for-each>

in xslt 1 you may find that your processor has a tokenize extension
function (saxon:tokenize for example) or exslt:tokenize or you could use
the exslt tokenize template which is a recursive template giving
splitting up the attribute which you can use if your system does not
provide an extension function.

http://www.exslt.org/str/functions/tokenize/

David

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