Spaces within <xsl:text> should appear, if they don't then it's probably because you're using a Microsoft parser to parse the stylesheet. Microsoft parsers have a nasty habit of removing your whitespace unless you ask them very nicely to preserve it: it's a property on the Document node called something like preserveWhitespace.
Michael Kay
http://www.saxonica.com/
Author, XSLT Programmer's Reference and XPath 2.0 Programmer's Reference