Axis specifers

I have written an xslt and am having issues with axis specifiers. I
will preent the sample input and xslt and explain the problem. Please
let me know where I am going wrong.

<list>
<note><para>This is the first note.</para></note>
<note><para>This is the second note. </para></note>
<text><para>This is some text. </para></text>
</list>

XSLT:
<xsl:template match="note">
<xsl:choose>
			<xsl:when test="parent::list and position()=1">
</xsl:when>
<xsl:otherwise>
			<fo:list-block>
					<fo:list-item>
						<fo:list-item-label>
							<fo:block font-weight="bold">NOTE: </fo:block>
						</fo:list-item-label>
					<fo:list-item-body start-indent="body-start()" end-indent="0pt">
							<fo:block>
								<xsl:value-of select="."/>
							</fo:block>
						</fo:list-item-body>
					</fo:list-item>
				</fo:list-block>
	</xsl:otherwise>
		</xsl:choose>
</xsl:template>

<xsl:template match="note/para">
		<fo:inline border-left-width="0pt" border-right-width="0pt">
			<xsl:apply-templates select="node()"/>
		</fo:inline>
</xsl:template>

<xsl:template match="list">
<xsl:if test="child::note">
<xsl:apply-templates select="note" mode="list"/>
</xsl:if>
</xsl:template>

<xsl:template match="note" mode="list">
		<fo:list-block>
			<fo:list-item>
				<fo:list-item-label>
					<fo:block font-weight="bold">NOTE: </fo:block>
				</fo:list-item-label>
				<fo:list-item-body start-indent="body-start()" end-indent="0pt">
					<fo:block>
						<xsl:value-of select="."/>
					</fo:block>
				</fo:list-item-body>
			</fo:list-item>
		</fo:list-block>
	</xsl:template>
	<xsl:template match="note/para" mode="list">
		<fo:inline>
			<xsl:apply-templates select="node()" mode="list"/>
		</fo:inline>
	</xsl:template>

NOTE: This is the first note.
NOTE: This is the second note.
1. This is some text.

However,  what happens is after the processor checks for the first
position of note, it just dumps the second note element on to the
number '1' - that is number '1' and NOTE overlap and the styling gets
messy.

Can anyone help me resolve this issue? How can I tell the processor
that after the first position of "note" check if there is another
"note" element and if it is, then that should also be displayed above
the text element on the output, following the first note element? So
irrespective of the number of "note" elements inside the <list>
element, they shoudl always be displayed above the <text> element as
shown in the desired output. Please give me any ideas and suggestions.