flat XML to normal XML

Hello list,

I wish to transform an xml which has level information in each item 
(Table) to xml which has hierarchy as stated in those item's element.
<DataSet xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance";>
   <Table>
       <Level>1</Level>
       <Description>Cars</Description>
   </Table>
   <Table>
       <Level>2</Level>
       <Description>BMW</Description>
   </Table>
   <Table>
       <Level>3</Level>
       <Description>316</Description>
   </Table>
   <Table>
       <Level>3</Level>
       <Description>Z4</Description>
   </Table>
   <Table>
       <Level>2</Level>
       <Description>Citroen</Description>
   </Table>
   <Table>
       <Level>3</Level>
       <Description>C2</Description>
   </Table>
   <Table>
       <Level>3</Level>
       <Description>C4 coupe</Description>
   </Table>
   <Table>
       <Level>2</Level>
       <Description>Alfa Romeo</Description>
   </Table>
   <Table>
       <Level>3</Level>
       <Description>156</Description>
   </Table>
   <Table>
       <Level>1</Level>
       <Description>Motorcycles</Description>
   </Table>
   ...
   ...
</DataSet>


Target xml should look something like this:

<NewDataSet>
   <Transport name="Cars">
      <Brand name="BMW">
         <Model>316</Model>
         <Model>Z4</Model>
      </Brand>
      <Brand name="Citroen">
         <Model>C2</Model>
         <Model>C4 coupe</Model>
      </Brand>
      <Brand name="Alfa Romeo">
         <Model>156</Model>
      </Brand>  
   </Transport>
   <Transport name="Motorcycle">
      ...
   </Transport>
</NewDataSet>


So, based on the Level element in the source xml for each Table entry, 
an appropriate subtree must be constructed and inserted in target xml. 
Levels are ordered following this pattern: 
1,2,3,3,...,3,2,3,...,3,...,1,2,3,3,...,2,3,...,3
Busting my head over this for two days now, help appreciated. If only I 
could find the guy who created this "flat" xml...$%##@@!
--Bob


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