Here is final working code ... Thanks to all who helped.
<xsl:template match="blockQuotes"/>
<xsl:template
match="blockQuotes[not(preceding-sibling::*[1][self::blockQuotes])]">
<xsl:element name="blockQuote">
<xsl:call-template name="lineGroupOrP"/>
<xsl:apply-templates
select="following-sibling::*[1][self::blockQuotes]" mode="blockQuotes"/>
</xsl:element>
</xsl:template>
<xsl:template match="blockQuotes" mode="blockQuotes">
<xsl:call-template name="lineGroupOrP"/>
<!-- start recursion - - end when there is not -->
<xsl:apply-templates
select="following-sibling::*[1][self::blockQuotes]" mode="blockQuotes"/>
</xsl:template>
<xsl:template name="lineGroupOrP">
<xsl:choose>
<xsl:when test="child::paragraph-continuation">
<xsl:apply-templates
select="child::paragraph-continuation"/>
</xsl:when>
<xsl:when test="child::lineGroup">
<xsl:apply-templates select="child::lineGroup"/>
</xsl:when>
<xsl:otherwise>
<xsl:element name="p">
<xsl:apply-templates/>
</xsl:element>
</xsl:otherwise>
</xsl:choose>
</xsl:template>
Jim Albright
704 843-0582
Wycliffe Bible Translators
XSL-List info and archive: http://www.mulberrytech.com/xsl/xsl-list