[xsl] How to create new xml elements using xslt?

["Khalid"<k_ali@xxxxxxxxxxxxxxx>]

Hello,I appologise if this is a duplicate post.
My question is this, how to create new elements?.

I can read 2 xml files and create a single file output with some selected nodes
from both files,but I want to create some new elements aswell and they may be
appended in the beginning or at the end of the created document and I may want
to insert a new element in the middle of the this newly created document.
Can some one guide me to how to get this done.
btw. I can read 2files and a print a new file with selected elements.

Khalid

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