Would it be possible to make a dummy input xml just so I can understand?

for example:
<code>

<sitemap>
<navlink>
<linkname>some link one</linkname>
<linkpath>http//www.linkone.com</linkpath>
</navlink>
<navlink>
<linkname>some link two</linkname>
<linkpath>http//www.linktwo.com</linkpath>
</navlink>
<navlink>
<linkname>some link three</linkname>
<linkpath>http//www.linkthree.com</linkpath>
</navlink>
</sitemap>

</code>

Then I would use the <xsl: template match="sitemap"> and use the for-each select to do the code?

Or have I totally lost it?