work-around for poor XML design needed

Hi all,
I need a workaround for a poor XML design.  The XML structure is as follows:
<states>
<!-- countries which belong to no regional organization -->
  <country>AA</country>
  <country>AB</country>
  <country>AC</country>
  <country>AD</country>
<!-- a regional organization -->
  <region>
      <!-- the name of the regional org. is a country code -->
       <country>AP</country>
  </region>
<!-- countries following a region are members of that regional org. -->
  <country>GH</country>
  <country>GM</country>
  <country>KE</country>
  <country>UG</country>
<!-- another regional org. -->
  <region>
      <!-- the other regional org.'s name -->
       <country>EP</country>
  </region>
<!-- members of that regional org. -->
  <country>AT</country>
  <country>BE</country>
  <country>CH</country>
  <country>LI</country>
  <country>CY</country>
</states>

What I need is to display a list of regional organizations with members,
followed by all countries not in an organization as such:

AP: (GH, GM, KE, UG); EP: (AT, BE, CH, LI, CY); AA, AB, AC, AD

The problem is that the countries that make up a region are not elementally
contained and I'm unsure of a way to specify "the <country> elements between
this <region> and the next <region>"

This is the template I've been working with:

<xsl:for-each select="states/region/country">
    <xsl:value-of select="."/>:(
    <!-- PROBLEM: all following countries are siblings (regardless of
               which region they should belong to -->
             <xsl:for-each
select="parent::region/following-sibling::country">
                 <xsl:value-of select="."/>
                 <xsl:if test="not(position()=last)">
                    <xsl:text> </xsl:text>
                </xsl:if>
             </xsl:for-each>);
   </xsl:for-each>
     <xsl:if test="parent::region[1]/preceding-sibling::country">
           <xsl:for-each
select="parent::region[1]/preceding-sibling::country">
                <xsl:value-of select="."/>
                <xsl:if test="not(position()=last)">
                    <xsl:text> </xsl:text>
                </xsl:if>
           </xsl:for-each>
      </xsl:if>

Any help is always appreciated.  TIA, John


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