[xsl] Confusion about using xml:base in xsl:stylesheet element

[Bill French <french@xxxxxxxxxxxxx>]

Hi all,

I have the following directory/file structure:

common/
    |- core.xsl
a/
    |- 1.xsl
docs/
    |- document.xml

That is, three directories (common, a, and docs), each with one file 
(core.xsl, 1.xsl, and document.xsl, respectively).

Further, let's say that these directories live at the absolute path 
file:///z:/work/dev/xslt. In core.xsl, I have this:

<?xml version="1.0" encoding="UTF-8"?>
<xsl:stylesheet xmlns:xsl="http://www.w3.org/1999/XSL/Transform"; 
version="2.0"
    xml:base="file:///z:/work/dev/xslt">

    <xsl:include href="a/1.xsl"/>

    <xsl:variable name="doc" 
select="document('docs/doc.xml')"></xsl:variable>

    <xsl:template match="node() | @*">
        <xsl:apply-templates select="node() | @*"/>
    </xsl:template>

</xsl:stylesheet>

(Notice the xml:base attribute on the xsl:stylesheet element.)

Executing a transformation in the following way:

bfh@halibut /cygdrive/z/work/dev/xslt
$ java -jar saxon8.jar data.xml common/core.xsl

produces the error

Error at xsl:include on line 5 of file:/z:/work/dev/xslt/common/core.xsl:
  XTSE0165: java.io.FileNotFoundException: z:\work\dev\a\1.xsl (The 
system cannot find the path specified)
Failed to compile stylesheet. 1 error detected.


If I comment out the xsl:include, the call to the document() function 
produces a similar error.

Recoverable error on line 7 of file:/z:/work/dev/xslt/common/core.xsl:
  FODC0005: java.io.FileNotFoundException: z:\work\dev\docs\doc.xml 
(The system cannot find the path specified)
Error on line 7 of file:/z:/work/dev/xslt/common/core.xsl:
  FODC0005: Failed to load document docs/doc.xml
Transformation failed: Run-time errors were reported

In both cases, the processor seems to be setting the base-uri to 
file:///z:/work/dev, not file:///z:/work/dev/xslt as is specified. 
However, when I change the stylesheet to the following:

<?xml version="1.0" encoding="UTF-8"?>
<xsl:stylesheet xmlns:xsl="http://www.w3.org/1999/XSL/Transform"; 
version="2.0">

    <xsl:include href="../a/1.xsl"/>

    <xsl:variable name="doc" 
select="doc('../docs/doc.xml')"></xsl:variable>

    <xsl:template match="node() | @*">
        <xsl:apply-templates select="node() | @*"/>
        <xsl:value-of select="$doc"/>
    </xsl:template>

</xsl:stylesheet>

(I've removed xml:base and changed both the xsl:include's href attribute 
and the argument to the document function.) The transformation now runs 
as expected. What am I misunderstanding? I thought xml:base provided a 
baseline for all URIs/paths. Is that not the case?

Thanks in advance for any help!

Regards

--Bill