Sorry, I am still a little new to this and I had some trouble understanding 
this response to my post.
your best bet is to remove all <p/>'s and then apply text() matching
template that wraps text with <p/>, along with a blockquote template
that just copies itself.
If I understand this correctly, the text between two block quotes would be 
treated the same as a simple plain paragraph. I don't think, however, this 
will work because I would lose the attributes of the xml tagged paragraphs. 
My source xml contains paragraphs that contain a number attribute, as well 
as other inline tagging for italics, footnotes, etc.
For example:
<paragraph num="1">Yadda Yadda Yadda <italic>Italic Yadda</italic> Yadda:
<blockquote>Blah Blah Blah Blah</blockquote>
Yackity Yack Yack</paragraph>
I read the previous posts under the subject line "Transformation problem tei 
> xhtml" but I also had trouble understanding either of the suggested 
solutions.
Sorry, if I need a little too much hand holding but can someone explain how 
I would do this and how the suggested code would actually work?
I am basically trying to convert a basic document with standard features 
such as italic, footnotes, blockquotes, bullet lists etc. to XHTML. I would 
have thought that these basic issues would have been tackled numerous times 
by now. But every time I google these issues before posting questions to 
lists or forums, I can't find anything comparable. Most XML-related 
tutorials and books seem to assume use of more data-type information 
(without much mixed content), rather than document-type information.
In short, I would be happy to learn more before posting if anyone can point 
me toward any XML resources for dealing with actual document text issues?