RE: definition of "first character of each word"

 
>   capitalize
>         Puts the first character of each word in uppercase; 
>         other characters are unaffected.
> 
> Personally, I'd be hesitant to try to be more specific
> about "words" in the XSL spec.  This sort of thing should 
> be left as somewhat implementation specific.

Presumably not only implementation-specific but also locale-specific:
conventions for how to capitalize a headline vary dramatically, for example,
between Britain and the US.

Michael Kay
http://www.saxonica.com/