document('/folder/folder2/$nm.xml')/title doesn't work.
Despite the use of "$" to prefix a variable name, XSLT variables do not work
by textual substitution. A variable reference is an expression, which can
only be used in a place where you might use a function call (for example).
So, as others have indicated, you need to build the string using concat().
Michael Kay
http://www.saxonica.com/
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