[xsl] Where (how) to use XML/XSLT in my .Net Project

[Jeffry Proctor <jpgmt@xxxxxxxxxxxxx>]

C# ASP.Net 3.5 (2008)
XSLT 2.0 developed: SaxonicaHE, production: SaxonPE
MSSQL
XML Accord Standard, <TXLife/>, <TXLifeRequest/>
The project will query
SQL data from a few data sources, then use an XML and/or 
XSLT to build an
output XML file. Later on the same XML will be sent to a 
webservice.
The
project's code will not know how to build the output file, instead it will
rely on an XML/XSLT control file to tell it what to do.
My dilemma lies in
that I'm not sure if I should have the control file be an 
XML, XSLT or ??
Below is a possible avenue using XML to instruct the c#.Net project what nodes
need to be constructed and where to map the data. 

...this pseudo example....
<Control>
   <TXLife>
  <Obj_Name>Policy</Obj_Name>
   <!-- comment: 1=true,
0=false -->
    <Obj_Complex>1</Obj_Complex>
    <!-- comment: attribute value
1=term, 2=Disability, 3=..... -->
    <Obj_Attribute
value="1">tc</Obj_Attribute>
    <Parent_Name>Olife</Parent_Name>
    <!--
comment: Object Elements... -->
   
<Obj_Elements>PolicyAmount,Term,Modal</Obj_Elements>
   <!-- comment:
Source/Result Name/Value Pair mapping -->
   <Source_ResultNV
sc="uPolAmount">PolicyAmount</Source_ResultNV>
   <Source_ResultNV
sc="uPolYears">Term</Source_ResultNV>
   <Source_ResultNV
sc="uPmtMode">PremiumModal</Source_ResultNV>
  </Obj_Name>
  <Obj_Name...etc
for each simple or complex element />
 </TXLife>
</Control>
The project will
then build the result XML based on the above and any subsequent
additions/changes to the control file, will (if all is well) result in a
different result XML file, with no need to change the c# code.
I suppose that
my question is if a control XML file is a good direction or if 
XSLT can do it
all, map data into the XML output and not rely on my c# .Net code 
to know how
to form or map the data into the result XML.
TIA
JeffPGMT...