Group various elements with empty tags (flat XML structure to hierarcial

I need to convert a flat xml document to something more hierarcial by 
surrounding some elements with other empty elements.
Original XML:
------------
<Record>
  <id>102</id>
  <type>O</Type>
  <count>37</count>
  <firstname>Joe</firstname>
  <lastname>Smith</lastname>
  <initial>A</initial>
  <street>35 Main Street</street>
  <city>Moosejaw</city>
  <country>Sasaktchewan</country>
  <postal_code>TOEOPO</postal_code>
  <amount1>1.23</amount1>
  <amount2>4.56</amount2>
  <amount3>7.89</amount3>
  <language>E</language>
</Record>


Desired Output:
--------------
<Record>
  <id>102</id>
  <type>O</Type>
  <count>37</count>
  <NAME>
     <firstname>Joe</firstname>
     <lastname>Smith</lastname>
  </NAME>
  <ADDRESS>
     <street>35 Main Street</street>
     <city>Moosejaw</city>
     <country>Saskatchewan</country>
     <postal_code>TOEOPO</postal_code>
  </ADDRESS>
  <language>E</language>
</Record>


My stylesheet:
-------------
<xsl:stylesheet version="1.0" 
xmlns:xsl="http://www.w3.org/1999/XSL/Transform";>
   <xsl:template match="node()|@*">
     <xsl:copy>
        <xsl:apply-templates select="node()|@*"/>
   </xsl:copy>
 </xsl:template>

<xsl:template match="Record">
<Record>
  <xsl:apply-templates select="lastname" mode="Name"/>
  <xsl:apply-templates select="postal_code" mode="PC"/>
</Record>
</xsl:template>

<xsl:template match="lastname" mode="Name">
<NAME>
<xsl:apply-templates 
select="preceding::firstname[generate-id(following::lastname[1]) = 
generate-id(current())]"/>
<xsl:apply-templates select="."/>
</NAME>
</xsl:template>

<xsl:template match="postal_code" mode="PC">
<ADDRESS>
<xsl:apply-templates 
select="preceding::street[generate-id(following::postal_code[1]) = 
generate-id(current())]"/>
<xsl:apply-templates select="."/>
</ADDRESS>
</xsl:template>

<xsl:template match="Record/*">
<xsl:copy-of select="."/>
</xsl:template>

</xsl:stylesheet>

My output:
--------------
<NAME>
  <firstname>Joe</firstname>
  <lastname>Smith</lastname>
</NAME>
<ADDRESS>
  <street>35 Main Street</street>
  <postal_code>TOEOPO</postal_code>
</ADDRESS>


Can anyone tell me where I have gone wrong? I'm missing <id>, <type> etc, 
and my xsl returns only 2 elements when more are sometimes required.
Thanks for your time,
M Glenties

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