[xsl] How to Use Current Node Value to Test to See if Option

I have a menu and a list of items that a user has chosen. I want to
display 
the form and test each menu item to see if it is in the chosen_list. If
it is I 
want to set the option to selected. I can not figure out how to use
the
current node value to build a expression to test to see if the value
was in 
the chosen list of not. Right now the code below assigns the literal
string I want to 
execute to the variable $chosen-item.  The variable query never gets
evaulated
and so $chosen-item always evalutates to true and so everything is set
to selected.

Any ideas.

Thanks.



—- XML File —-

<SIMPLE_MENU>
  <CHOSEN_LIST>
    <CHOSEN_ITEM>Mexico</CHOSEN_ITEM>
  </CHOSEN_LIST>

  <MENU>
    <MENU_ITEM>Canada</MENU_ITEM>
    <MENU_ITEM>Mexico</MENU_ITEM>
    <MENU_ITEM>United States</MENU_ITEM>
  </MENU>
</SIMPLE_MENU>


—-XSL Style sheet —-

<xsl:stylesheet version="1.0"
xmlns:xsl="http://www.w3.org/1999/XSL/Transform";>
<xsl:output method="html"/>
<xsl:template match="/">

<HTML>
<BODY>
	<CENTER/>
	<FORM METHOD="POST" NAME="MENU" ACTION="ReportBuilder.ASP" >
	  <xsl:element name="SELECT">
	   <xsl:attribute name="NAME">VARIABLE</xsl:attribute>
	   <xsl:attribute name="MULTIPLE"/>
	   <xsl:attribute name="SIZE">3</xsl:attribute>
	   <xsl:apply-templates select="//MENU/MENU_ITEM" />
	  </xsl:element>

	  <p/>
	  
	  <input type="submit" name="btnSelect" value="Select"/>
	  <input type="button" name="btnCancel" value="Cancel"
onClick="window.location.href='ReportBuilder.asp'"/>
	</FORM>

        </BODY>
</HTML>
</xsl:template>

	
<xsl:template match="MENU/MENU_ITEM">
  <xsl:variable name="chosen-item">
    select="//CHOSEN_LIST/CHOSEN_ITEM/text()='.'"
  </xsl:variable>
  <xsl:value-of select = "$chosen-item" />
  
  <xsl:element name="OPTION">
    <xsl:if test="$chosen-item">
      <xsl:attribute name="SELECTED">selected</xsl:attribute>
    </xsl:if>
    <xsl:value-of select ="." />
  </xsl:element>
</xsl:template>


</xsl:stylesheet>



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