Can't believe I forgot to include Jeni's template:
<xsl:template name="escape-apos">
<xsl:param name="string" />
<!-- create an $apos variable to make it easier to refer to -->
<xsl:variable name="apos" select='"'"' />
<xsl:choose>
<!-- if the string contains an apostrophe... -->
<xsl:when test='contains($string, $apos)'>
<!-- ... give the value before the apostrophe... -->
<xsl:value-of select="substring-before($string, $apos)" />
<!-- ... the escaped apostrophe ... -->
<xsl:text>\'</xsl:text>
<!-- ... and the result of applying the template to the string after the
apostrophe -->
<xsl:call-template name="escape-apos">
<xsl:with-param name="string" select="substring-after($string, $apos)" />
</xsl:call-template>
</xsl:when>
<!-- otherwise... -->
<xsl:otherwise>
<!-- ... just give the value of the string -->
<xsl:value-of select="$string" />
</xsl:otherwise>
</xsl:choose>
</xsl:template>
XSL-List info and archive: http://www.mulberrytech.com/xsl/xsl-list