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Netbeans version used: netbeans-trunk-nightly-200708061200-full.zip The editor mandates that the newly created .xsl file should always have a default template. The 'orderToCustTransform.xsl' when created has a default root template defined. <xsl:template match="/"> </xsl:template> Since the editor does not yet support template creation, manually changing this to have default templates as shown <xsl:template match="ns:Orders"> <CustomerHistoryEntries xmlns="http://xml.netbeans.org/schema/custhistory" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" xsi:schemaLocation="http://xml.netbeans.org/schema/custhistory custhistory.xsd"> <xsl:apply-templates/> </CustomerHistoryEntries> </xsl:template> leads to error message in the design view "The XSLT file does not contain a root template element" It is not mandatory that a .xsl file should contain a root template element.