XSL Iteration... or something like that

Hi,

I'm building an archive system using XML/XSL as the formatting layer.

My problem is this. I have a hierachy of folders in the listed as follows:

<folder name="archiveRoot"
    friendlyName="Your archive"
    href="/archive/">
    <folder
        name="subfolder"
        friendlyName="Sub Folder"
        href="/archive/subfolder" />
    <folder
        name="subfolder1"
        friendlyName="Sub Folder 1"
        href="/archive/subfolder1">
        <folder name="subsubfolder1"
            friendlyName="Sub Sub Folder 1"
            href="/archive/subfolder1" />
    </folder>
    <folder name="subfolder2"
        friendlyName="Sub Folder 2"
        href="/archive/subfolder2" />
</folder>

Each <folder ...> element can have an infinite number of child
<folder ...> elements.

What I want to do to format these, is indent them nicely using HTML 
&nbsp;'s according to the level of the hierachy.
I've been trying now for a few days on and off, but have failed 
miserably, and was wondering if anybody knew of a way to do it...
So does anyone have an idea of how to display these? Or does anyone have 
any suggestions as to XML schema that would suffice the task?
--
Richard - richard[at]gotworms.co.uk
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