The reason for this error is the doctype line.
<!DOCTYPE content SYSTEM "D:/test/DTD/camml-con.dtd">
Saxon is not accepting this line. I am using default class
net.sf.saxon.Transform.
As others have pointed out, you need to use a URI here and not a filename.
But one addition to the comments: the error is not being reported by Saxon,
but by the XML parser. You may not realize it, but the XML parser is not
part of Saxon. Unless you supply your own parser, Saxon uses the one that
comes as part of the Java runtime.
Michael Kay
http://www.saxonica.com/