First positional grouping

This is my first attempt at positional grouping and I'm almost there.
I'd like to transform

<!-- source.xml -->
<root>
<var VGID="AA" label="Families"/>
<var label="Fathers"/>
<var label="Mothers"/>
<var VGID="AB" label="Relatives"/>
<var label="Inlaws/>
</root>

into
<!-- desiredResult.xml -->
<varList VGID="AA" label="Families"/>
	<var label="Fathers"/>
	<var label="Mothers"/>
</varList>
<varList VGID="AB" label="Relatives"/>
	<var label="Inlaws/>
</varList>

by promoting all <vars> with a @VGID. I'm following the example at
http://www.dpawson.co.uk/xsl/sect2/N4486.html#d4085e229
Using the following style sheet,

<xsl:template match="/">
	<xsl:apply-templates/>
</xsl:template>

<xsl:template match="root">
	<root>
		<xsl:for-each select="var[@VGID]">
			<varList>
				<xsl:apply-templates select="@*"/>
				<xsl:for-each select="following-sibling::var[
					  count(preceding-sibling::var[@VGID][1] | current()) = 1]">
					<xsl:copy-of select="."/>
				</xsl:for-each>
			</varList>
		</xsl:for-each>
	</root>
</xsl:template>

<xsl:template match="@*|node()" priority="-1">
	<xsl:copy><xsl:apply-templates select="@*|node()"/></xsl:copy>
</xsl:template>

I get this result:
<!-- ActualResult.xml -->
<root>
	<varList VGID="AA" label="Families">
		<var label="Fathers" />
		<var label="Mothers" />
		<var VGID="AB" label="Relatives" />
	</varList>
	<varList VGID="AB" label="Relatives">
		<var label="Inlaws" />
	</varList>
</root>

which has an extra third node under the first <varList>.
Can someone help me get rid of the extra node? It should
be a matter of just amending the XPATH in the inner for-each.

I-Lin Kuo, Ann Arbor, MI
Macromedia Certified ColdFusion 5.0 Advanced Developer
Sun Certified Java 2 Programmer
Ann Arbor Java Users Group (http://www.aajug.org)