[xsl] Replacing character entities

["Wagstaff, Jason" <WagstaffJ@xxxxxxxxxxxx>]

I have a text block that contains 
 
 wherever the user wanted
it to look like a paragraph break. I don't any have control over the
input.

Any ideas on how can I replace &#13; with <br/>? Or better still, use
the &#13 to identify the paragraphs and wrap each <p>paragraph</p>?

I have tried using the information from this
http://www.stylusstudio.com/xsllist/200404/post70930.html, but I can not
get it to find a the character entities.

jason