The op: functions are not directly exposed to the user, they are a formal device for specifying the behaviour of operators such as "=", "+", "<<", "is" and so on.
The xs: functions perform casting between different schema data types, for example xs:date("2006-10-04") converts a string to a date. These functions are written with an explicit namespace prefix (you can use any prefix bound to the schema namespace).
Michael Kay
http://www.saxonica.com/
Author, XSLT Programmer's Reference and XPath 2.0 Programmer's Reference