[xsl] Placing mark-up in between strings

[Jeff Sese <jsese@xxxxxxxxxxxx>]

Hi,

I have this function (thanks to sir M. Kay) that search and replaces all 
occurrences of a sequence of search string with its corresponding 
replacement string.

<xsl:function name="ati:replace-all">
   <xsl:param name="input" as="xs:string"/>
   <xsl:param name="words-to-replace" as="xs:string*"/>
   <xsl:param name="replacement" as="xs:string*"/>
   <xsl:sequence select="if (exists($words-to-replace)) then 
ati:replace-all(replace($input, $words-to-replace[1], 
$replacement[1]),remove($words-to-replace,1),remove($replacement,1)) 
else $input"/>
</xsl:function>

Can this be modified so that I can place the search string inside an 
element and the replacement string inside an attribute?

I have this as a sample:

<p>This is supposed to be my input string with search1, search2, and 
search3.</p>

I want this to be:

<p>This is supposed to be my input string with <replacement 
value="replacement1">search1</replacement>, <replacement 
value="replacement2">search2</replacement>, and <replacement 
value="replacement3">search3</replacement>.</p>

Thanks,
Jeff