> However, using elements:
> 
>     <xsl:element name="xhtml:ul">
>     ...
>     </xsl:element>
> 
> Produces '<xhtml:ul>...</xhtml:ul>' in the output XML.

which (assuming you have the right namespace bound to xhtml:) is the
same thing, and it will render correctly in a system that is rendering
xhtml (eg firefox or opera, if you are serving it as
application/xhtml+xml) However it isn't DTD-valid (because DTD don't
know about namespaces) and it won't render on a system like IE which
knows nothing about XHTML and just renders the file as HTML by ignoring
small syntactic differences like /> empty element syntax, but falling
over large syntactic differences like prefixes.

David

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