Or does the apply-templates only apply to the childrens of the node being
processed?
It applies to the nodes selected in its select attribute, so if you go
<xsl:apply-templates select="/root/h3[4]/h3[2]"/>
it will apply to the single h3 node which is the second h3 child of the
fourth h3 child or root.
If you don't use select= then a default selection of node() is used
which selects all the children (text, elements, comments and processing
instructions). So a short answer to your question is "yes".
David
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