Hi,
You can use a template for each condition that triggers the generation 
of an element. The role of each such template will be to check its 
condition and emit the element to the output if the condition is met and 
in either case it will do some other processing required at that stage 
and then delegate to the template that checks the next condition.
In your case you can have a template to check if the paragraph element 
should be present, a template for bold and a template for italic.
<?xml version="1.0" encoding="UTF-8" ?>
<xsl:stylesheet xmlns:xsl="http://www.w3.org/1999/XSL/Transform" 
version="1.0">
    <xsl:template match="label">
        <xsl:call-template name="checkParagraph"/>
    </xsl:template>
    <xsl:template name="checkParagraph">
        <xsl:choose>
            <xsl:when test="@paragraph='true'">
                <p>
                    <span>
                        <xsl:copy-of select="@align"/>
                        <xsl:call-template name="checkBold"/>
                    </span>
                </p>
            </xsl:when>
            <xsl:otherwise>
                <span>
                    <xsl:copy-of select="@align"/>
                    <xsl:call-template name="checkBold"/>
                </span>
            </xsl:otherwise>
        </xsl:choose>
    </xsl:template>
    <xsl:template name="checkBold">
        <xsl:choose>
            <xsl:when test="@bold='true'">
                <b>
                    <xsl:call-template name="checkItalic"/>
                </b>
            </xsl:when>
            <xsl:otherwise>
                <xsl:call-template name="checkItalic"/>
            </xsl:otherwise>
        </xsl:choose>
    </xsl:template>
    <xsl:template name="checkItalic">
        <xsl:choose>
            <xsl:when test="@italic='true'">
                <b>
                    <xsl:value-of select="."/>
                </b>
            </xsl:when>
            <xsl:otherwise>
                <xsl:value-of select="."/>
            </xsl:otherwise>
        </xsl:choose>
    </xsl:template>
</xsl:stylesheet>
Hope that helps,
 George
-----------------------------------------------
George Cristian Bina
<oXygen/> XML Editor & XSLT Editor/Debugger
http://www.oxygenxml.com
Tim Lord wrote:
Hi,
I was wondering how to convert an element:
<label align="left" paragraph="true" italic="true" bold="true">This is a 
label</label>
Into this html:
<p><span align="left"><b><i>This is a label</i></b></span></p>
I found solutions to converting attributes to elements but what about 
nested elements like this?
Cheers,
/tim