google for muenchian grouping, then
<xsl:key name="a" match="rec" use="name"/>
<xsl:template name="root">
<root>
<xsl:for-each select="rec[generate-id()=generate-id(key('x',name))]">
<xsl:sort select="name"/>
<xsl:for-each select="key('x',name)">
<xsl:sort data-type="number" select="year"/>
<rec>
<xsl:if test="position()=1">
<xsl:attribute name="tag">latest</xsl:attribute>
</xsl:if>
<xsl:copy-of select="*"/>
</rec>
</xsl:for-each>
</xsl:for-each>
</root>
</xsl:template>
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