crappy formatting with <xsl:text>

Hi y'all,

I'm using xsltproc to do some fairly easy transformations, but I've
run into following problem: if I use as little as one <xsl:text>
element in my stylesheet, the resulting file will be nowhere near
pretty-printed, but garbled up into several mile-long lines. That does
not affect machine-readability, but it does affect human-readability.
Without this text element, the otherwise unchanged XML output will be
nicely printed, as expected. Why is this happening and how do I
prevent it? Thanks for any help.

Jan

P.S. I'm using Ubuntu 10.10 and the default version of libxslt that
comes with it.