Mukul,
as Michael says you don't need the errata in this case, section 3.4 is
not at all ambiguous here it says:
Initially, the set of whitespace-preserving element names contains all
element names.
so unless you specify strip-space in your stylesheet all white space in
the source is preserved.
This behaviour is implemented in all xslt engines that I have seen
(including msxsl) so I don't think that there is any reason to doubt
that this is clear.
The difference in msxml is not in the implementation of xsl strip-space
it is in the parser producing the input tree before xslt starts. msxml
removes white space (irrespective of xsl:strip-space or xsl:preseve
space, the xsl instructions can only affect the input tree as seen by
xsl and in the case of msxml the input tree has essentially gone through
a pre-transformation that has removed space. If you set the
preservewhitepace property so that the parser does not do that, you'll
see that msxml implements xsl space stripping in a conformant way.
David
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