[xsl] Do Templates Conflict?

["Edward Bryant" <bryant_edward@xxxxxxxxxxx>]

I was wondering if someone can explain why two templates that both apply to 
a source xml element do not conflict.

I have one template that applies to all the paragraphs in a document and 
another that applies only to the first paragraph. I did this assuming it 
would somehow not work because of the conflict between the templates. 
However, to my surprise it worked fine. Now, I am even more worried because 
I don't know why it worked. Can someone explain what is going on?

Does the order the templates are listed in matter?

Does it matter that one selected a more specific context?