For anyone who cares, I found the solution. I have included it.
<xsl:template name="text-print">
<xsl:param name="txt"/>
<xsl:param name="width"/>
<xsl:param name="title"/>
<xsl:param name="first"/>
<xsl:param name="text-pos"/>
<xsl:param name="space-padding"/>
<xsl:param name="space-pad">
<xsl:call-template name="repeat-chars">
<xsl:with-param
name="rep-chars"><xsl:text>&space;</xsl:text></xsl:with-param>
<xsl:with-param name="times" select="$space-padding"/>
<xsl:with-param name="str"></xsl:with-param>
</xsl:call-template>
</xsl:param>
<xsl:if test="$txt">
<xsl:variable name="real-width">
<xsl:choose>
<xsl:when test="contains(substring($txt, 1, $width), $newln)">
<xsl:call-template name="find-newline">
<xsl:with-param name="txt" select="$txt"/>
<xsl:with-param name="width">1</xsl:with-param>
<xsl:with-param name="def" select="$width - $space-padding"/>
</xsl:call-template>
</xsl:when>
<xsl:otherwise>
<xsl:call-template name="tune-width">
<xsl:with-param name="txt" select="$txt"/>
<xsl:with-param name="width" select="$width - $space-padding"/>
<xsl:with-param name="def" select="$width - $space-padding"/>
</xsl:call-template>
</xsl:otherwise>
</xsl:choose>
</xsl:variable>
<xsl:choose>
<xsl:when test="$first = 'true' and $text-pos = 1">
<!-- TEXT OUTPUT BEGINS -->
<xsl:value-of select="$title"/>:<xsl:text>&tab;</xsl:text>
<xsl:value-of select="$space-pad"/>
<xsl:value-of select="substring($txt, 1, $real-width)"/>
<xsl:if test="not(contains(substring($txt, $real-width, 1),
$newln))"><xsl:text>&newln;</xsl:text></xsl:if>
<!-- TEXT OUTPUT ENDS -->
</xsl:when>
<xsl:otherwise>
<!-- TEXT OUTPUT BEGINS -->
<xsl:text>&tab;</xsl:text>
<xsl:value-of select="$space-pad"/>
<xsl:value-of select="substring($txt, 1, $real-width)"/>
<xsl:if test="not(contains(substring($txt, $real-width, 1),
$newln))"><xsl:text>&newln;</xsl:text></xsl:if>
<!-- TEXT OUTPUT ENDS -->
</xsl:otherwise>
</xsl:choose>
<xsl:call-template name="text-print">
<xsl:with-param name="txt" select="substring($txt, $real-width +
1)"/>
<xsl:with-param select="$width" name="width"/>
<xsl:with-param name="first">false</xsl:with-param>
<xsl:with-param name="title" select="$title"/>
<xsl:with-param name="space-padding" select="$space-padding"/>
</xsl:call-template>
</xsl:if>
</xsl:template>
<!-- Finds the point at which a line should be cut. -->
<xsl:template name="tune-width">
<xsl:param name="txt"/>
<xsl:param name="width"/>
<xsl:param name="def"/>
<xsl:variable name="newln"><xsl:text>&newln;</xsl:text></xsl:variable>
<xsl:variable name="space"><xsl:text>&space;</xsl:text></xsl:variable>
<xsl:if test="string-length($txt) < $width">
<xsl:value-of select="string-length($txt)"/>
</xsl:if>
<xsl:choose>
<xsl:when test="$width = 0">
<xsl:value-of select="$def"/>
</xsl:when>
<xsl:otherwise>
<xsl:choose>
<xsl:when test="substring($txt, $width, 1) = $space">
<xsl:value-of select="$width"/>
</xsl:when>
<xsl:otherwise>
<xsl:call-template name="tune-width">
<xsl:with-param name="txt" select="$txt"/>
<xsl:with-param name="width" select="$width - 1"/>
<xsl:with-param name="def" select="$def"/>
</xsl:call-template>
</xsl:otherwise>
</xsl:choose>
</xsl:otherwise>
</xsl:choose>
</xsl:template>
<xsl:template name="find-newline">
<xsl:param name="txt"/>
<xsl:param name="width"/>
<xsl:param name="def"/>
<xsl:if test="$def=$width">
<xsl:value-of select="$def"/>
</xsl:if>
<xsl:choose>
<xsl:when test="string-length(substring($txt, $width, 1)) = 0 or
substring($txt, $width, 1) = $newln">
<xsl:value-of select="$width"/>
</xsl:when>
<xsl:otherwise>
<xsl:call-template name="find-newline">
<xsl:with-param name="txt" select="$txt"/>
<xsl:with-param name="width" select="$width + 1"/>
<xsl:with-param name="def" select="$def"/>
</xsl:call-template>
</xsl:otherwise>
</xsl:choose>
</xsl:template>
Checking if we had reached the end of the string seemed to do the trick.
Cheers.
Kamal.
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