test for a empty node

Regarding Q1

Use <p> or <br/> if your output is html or set <xsl:output method="text"/>
and place returns in your XLST if you want text output

Regarding Q2, you can use text() to test if there is a text
node. 

<xsl:template match="organisations/orgRecord/state">
 <xsl:choose>
  <xsl:when test="text()">
   state has value of <xsl:value-of select="."/>
  </xsl:when>
  <xsl:otherwise>
   state tag is empty
  </xsl:otherwise>
 </xsl:choose>
</xsl:template>

Regards,

Dan

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