Transformer adds unwanted newlines

I have a problem with a transformer which adds unwanted newlines. I am
using the Xalan that comes with JDK 1.4.2 (this is an old J2EE project
which breaks if I try to use a newer JDK) and I have a rule to copy HTML
fragments embedded in my XML:

  <xsl:template match='div|span'>
    <xsl:copy-of select="."/>
  </xsl:template>

  <table cellpadding="10">
  <tr>
  <td>
  ...

  <pre>  public class Demo {<br>
  <b>public static void</b> main...

That is, Xaalan is inserting newlines between tags which are separated
only by whitespace. In the case of the <pre> block above, the spaces
after <br /> are output, followed by a newline, which means that the
indentation is completely wrong.

I have tried adding indent="no" to my <xsl:output> tag but this has no
effect.

----------------------------------------------------------------------
 John English              | mailto:je@xxxxxxxxxxxxxx
 Senior Lecturer           | http://www.it.bton.ac.uk/staff/je
 School of Computing & MIS | "Those who don't know their history
 University of Brighton    |  are condemned to relive it" (Santayana)
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