xsl:for-each select="antiCollisionSet" is only going to select one element, and sorting a set containing one element isn't going to do much good.
You want
xsl:for-each select="antiCollisionSet/antiCollisionData"
xsl:sort select select="separationFactor" (or however you choose to misspell it)
I'm confused about the relationship of separationFactor to interboundary/metres - are they always directly related?
To choose the largest value, do
<xsl:if test="position()=last()">
<xsl:value-of select="."/>
</xsl:if>
inside the for-each, after the xsl:sort.
Michael Kay
http://www.saxonica.com/
Author, XSLT Programmer's Reference and XPath 2.0 Programmer's Reference