[xsl] saxon xmlspy discrepancy in whitespace handling

Hi,

I write my xsl in xmlspy (version 2006 sp2) and use saxon 8804 to do
the transformation in java code.
I get the following discrepancy in the produced output, saxon seems to
produce extra white space.
I know that saxon is the more specification compliant of the two
processors, but xmlspy does what I want.
So I know that I am missing something fundamental here and I would be
grateful for some help.

The immediate question is, how do I get saxon to produce the output I
want, shown by the xmlspy output?
And secondly, what am I not understanding about whitespace handling in xsl?

Thank you for your attention.

Erwin

Here is my example code that demostrates the problem:

-- begin xml--
<?xml version="1.0" encoding="UTF-8"?>
<top>

 <section name="AAA" />

 <section name="BBB" />

</top>
-- end xml --

-- begin xsl --
?xml version="1.0" encoding="UTF-8"?>
<?altova_samplexml C:\workspaces\rad\garuda\storage\example.xml?>

<xsl:stylesheet version="2.0"
xmlns:xsl="http://www.w3.org/1999/XSL/Transform";
xmlns:fo="http://www.w3.org/1999/XSL/Format";
xmlns:xs="http://www.w3.org/2001/XMLSchema";
xmlns:fn="http://www.w3.org/2005/xpath-functions";
xmlns:xdt="http://www.w3.org/2005/xpath-datatypes";>


 <xsl:output method="text" version="1.0" encoding="iso-8859-1" />

 <xsl:variable name="newline"><xsl:text>&#10;</xsl:text></xsl:variable>

  <xsl:template match="/">
      <xsl:apply-templates />
  </xsl:template>

  <xsl:template match="//section" >
      <xsl:call-template name="section-header" />
 </xsl:template>

 <xsl:template name="section-header" >
     <xsl:value-of select="@name"/>
     <xsl:value-of select="$newline"/>
 </xsl:template>

</xsl:stylesheet>
-- end xsl --

-- begin xmlspy output --
AAA
BBB

-- end xmlspy output --

-- begin saxon output --


  AAA


  BBB


-- end saxon output -

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