<xsl:output method="xml"> and an if sentence to output XML

Below is my XSLT file.
I'd like to use <xsl:output method="xml">, but I haven't found a
solution to my problem, which is how to output <dd class="active"> if
parameter this exists and <dd> if it doesn't exist.

I would appreciate any help.
Thanks,
Jacob

<?xml version='1.0'?>
<xsl:stylesheet version="1.0" xmlns:xsl="http://www.w3.org/1999/XSL/Transform";>
<xsl:output method="text" encoding="iso-8859-1"
omit-xml-declaration="yes" standalone="no" indent="no" />

<xsl:template match="/">
        <xsl:for-each select="/opml/body/outline">
                <xsl:call-template name="outline">
                        <xsl:with-param name="title"><xsl:value-of 
select="@title"
/></xsl:with-param>
                </xsl:call-template>
        </xsl:for-each>
</xsl:template>

<xsl:template name="outline">
        <xsl:param name="title" />
        <xsl:text>&lt;dl&gt;</xsl:text>
                <xsl:text>&lt;dt&gt;</xsl:text>
                <xsl:value-of select="$title" />
                <xsl:text>&lt;/dt&gt;</xsl:text>
                <xsl:for-each select="outline">
                        <xsl:choose>
                                <xsl:when test="@this">&lt;dd 
class="active"&gt;</xsl:when>
                                <xsl:otherwise>&lt;dd&gt;</xsl:otherwise>
                        </xsl:choose>
                        <xsl:text>&lt;a href="</xsl:text>
                        <xsl:value-of select="@url" />
                        <xsl:text>"&gt;</xsl:text>
                        <xsl:value-of select="@title" />
                        <xsl:text>&lt;/a&gt;</xsl:text>
                        <xsl:text>&lt;/dd&gt;</xsl:text>
                </xsl:for-each>
        <xsl:text>&lt;dl&gt;</xsl:text>
</xsl:template>

</xsl:stylesheet>

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