Desired Output
<material>
<mattext texttype="text/html"><![CDATA[Select the <b>GPO Part
Additional
Info</b> link in the <b>Navigation</b>screen.]]></mattext>
</material>
You need to recognize that the angle brackets in this CDATA section are
ordinary characters, they are not markup. The string "<b>Navigation</b>" is
therefore just a string, it is not a representation of an element node.
That's the only purpose of CDATA sections: to tell the parser that angle
brackets are ordinary characters and not markup. So if this is really the
output you want, you will need to generate it as:
<b><xsl:apply-templates/></b>
Michael Kay