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Here is a quick method to aid in transformations of strings (XML and XSL) in C# (.NET 2.0).

        public string Transform(string xml, string xsl, bool useresolver)
        {
            System.IO.StringWriter writer = new System.IO.StringWriter();
            System.Xml.Xsl.XslCompiledTransform t = new System.Xml.Xsl.XslCompiledTransform();
            System.Xml.XmlReaderSettings settings = new System.Xml.XmlReaderSettings();
            System.Xml.XmlUrlResolver resolver = new System.Xml.XmlUrlResolver();
            resolver.Credentials = System.Net.CredentialCache.DefaultCredentials;
            System.Xml.XmlReader xmlReader = System.Xml.XmlReader.Create(new System.IO.StringReader(xml));
            System.Xml.XmlReader xslReader = System.Xml.XmlReader.Create(new System.IO.StringReader(xsl));
            if (useresolver)
            {
                t.Load(xslReader, System.Xml.Xsl.XsltSettings.Default, resolver);
            }
            else
            {
                t.Load(xslReader);
            }
            t.Transform(xmlReader, null, writer);
            return writer.ToString();
        }