<A HREF="home">
that would just produce an attribute with value home (as you presumably
found out)
You want to evaluate the home variable, so you want $home not home and
then you want to put it in {} so it is evaluated not taken as a string
so:
<A HREF="{$home}">
Note it would be better to be
<a href="{$home}">
At some point you are going to want to switch from html to xhtml and in
xhtml element and attribute names are lower case.
You don't actually need a variable at all:
<xsl:variable
name="home">
<xsl:value-of
select="concat(test_name,'.xml')"/>
</xsl:variable>
<a href="{$home}">
could more easily be written
<a href="{test_name}.xml">
David
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