Trouble with disable-output-escaping

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All,

I'm running Cocoon 2.1.11 on Oracle Java 1.6.0_26. I'm using the
default Xalan 2.7.1 XSLT processor.

All examples are roughly mocked-up from a much more complicated
configuration so I apologize if there are typos, etc. -- I hand-typed
this message with no copy/paste.

I have some text data wrapped-up in XML like this:

<node>
  <subnode>
    There is &lt;b&gt;HTML text&lt;/b&gt; in here.
  </submode>
</node>

I'd like to spit-out that text as if it were HTML -- that is, without
escaping it on output. I would like to get this text output:

There is <b>HTML</b> in here.

But instead I get this:

    There is &lt;b&gt;HTML text&lt;/b&gt; in here.

Which, of course, is no surprise given no other instructions.

So I tried using disable-output-escaping, which seems uniquely-suited
for this purpose:

<xsl:template match="subnode">
  <xsl:value-of select="." disable-output-escaping="yes" />
</xsl:template>

I observe no change in the output. The XSL file has definitely been
re-read from the disk (I made other changes so I could verify at least
that much), so that's not an issue.

Here's my (rough) configuration:

sitemap:
<map:match pattern="foo.html">
  <map:generate src="source.xml" />

  <map:transform src="generate-cincludes-1.xsl" />

  <map:transform src="generate-cincludes-2.xsl" />

  <map:transform type="cinclude" />

  <!-- this is the XSL I'm working with: -->
  <map:transform src="the-transformer-in-question.xsl" />

  <map:transform type="cinclude" label="content" />

  <map:transform type="i18n" />
  <map:transform src="strip-namespace.xsl" />
  <map:serialize type="xhtml" />
</map:match>

My template header:

<xsl:stylesheet version="1.0"
    xmlns:xsl="http://www.w3.org/1999/XSL/Transform"
    xmlns:i18n="http://apache.org/cocoon/i18n/2.1"
    xmlns:cinclude="http://apache.org/cocoon/include/1.0"
    xmlns:java="http://xml.apache.org/xalan/java"
> 
    <xsl:output method="html" indent="yes" />
...

My understanding is that Xalan itself does support
disable-output-escaping, and I can't see why Cocoon would interfere
with that.

Am I trying to use disable-output-escaping incorrectly? Do I need to
run Cocoon (or Xalan) in any special mode or with any particular
settings in order to enable disable-output-escaping?

Thanks,
- -chris
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