I think I may have isolated my problem...
When I call: <xsl:apply-templates select="following-sibling::*[1][self::OL_LI]"
mode="li"/>
in the following transform on the starred(*) line:
<xsl:template match="EM_OL_LI">
<xsl:if test="not(preceding-sibling::*[1][self::EM_OL_LI])">
<p>
<ol>
<xsl:apply-templates select="." mode="li"/>
</ol>
</p>
</xsl:if>
* <xsl:apply-templates select="following-sibling::*[1][self::OL_LI]"
mode="li"/>
</xsl:template>
<xsl:template match="EM_OL_LI" mode="li">
<li><xsl:apply-templates/></li>
<xsl:apply-templates select="following-sibling::*[1][self::EM_OL_LI]"
mode="li"/>
</xsl:template>
The select statement's axial position is unchanged from when I called
apply-templates within the if statement. That would explain why my transform
works if there is only one item in an embedded list and not when there is more
than one item. So I think I need to change my select statement to be "The first
following-sibling that is not an EM_OL_LI". Then test if that item is an OL_LI
item add it to the top level list. Am I right in thinking that the current
axial position when the apply-templates was called is the same reference point
for the second?