can someone please help me , i have a source xml file which needs to be transformed into another xml document with a deeper Hierarchy based on the value of element (E3) a new category (scheme ) is created and the table data needs to be copied in as children in
the result document is i have copied a sample source/result below
many thanks :

source:
<NewDataSet>
  <Table>
    <F1>1315578</F1>
    <E1>21</E1>
    <E3>2007-01-05T00:00:00+00:00</E3>
    <E4>P</E4>
    <E5>4597</E5>
    <E6>RfD</E6>
  </Table>

  <Table>
    <F1>6003290</F1>
    <E1>101</E1>
    <E3>2007-01-05T00:00:00+00:00</E3>
    <E4>P</E4>
    <E5>4596</E5>
    <E6>RfD</E6>
  </Table>
  <Table>
    <F1>6003674</F1>
    <E1>101</E1>
    <E3>2007-01-05T00:00:00+00:00</E3>
    <E4>P</E4>
    <E5>4605</E5>
    <E6>Taxicommute</E6>
  </Table>

  <Table>
    <F1>6003893</F1>
    <E1>103</E1>
    <E3>2007-01-05T00:00:00+00:00</E3>
    <E4>P</E4>
    <E5>4599</E5>
    <E6>RfD</E6>
  </Table>
  <Table>
    <F1>6003893</F1>
    <E1>202</E1>
    <E3>2007-01-05T00:00:00+00:00</E3>
    <E4>P</E4>
    <E5>4599</E5>
    <E6>RfD</E6>
  </Table>

</NewDataSet>

and a sample of the result should look like :

<?xml version="1.0" encoding="UTF-8" ?>
- <DisbursementsExtract ExtractDate="31/08/2006">
- <HEADER>
  <TRANSACTIONS />
  </HEADER>
- <SCHEME>
- <SCHEME_REFERENCE>
  <E1>101</E1>
  </SCHEME_REFERENCE>
- <Table>
  <E3>Junior</E3>
  <E4>RM</E4>
  <E5>MRS</E5>
  <E6>A130168</E6>
  </Table>
- <Table>
  <E3>Sorter</E3>
  <E4>A</E4>
  <E5>MR</E5>
  <E6>A133090</E6>
  </Table>
  </SCHEME>
- <SCHEME>
- <SCHEME_REFERENCE>
  <E1>21</E1>
  </SCHEME_REFERENCE>
- <Table>
  <E3>Pearson</E3>
  <E4>PA</E4>
  <E5>MS</E5>
  <E6>A069329</E6>
  </Table>
  </SCHEME>
  </DisbursementsExtract>

This isn't a specification that anyone can work from. There is no obvious relationship between your input and your output. Where do the names Junior, Sorter, and Pearson come from, for example?

It's also useful to tell us how you tried to solve this problem and where you got stuck. If I'm going to help you solve it, I want to know which parts of the problem you are capable of tackling on your own and which parts you need help with.

Michael Kay
http://www.saxonica.com/
Author, XSLT Programmer's Reference and XPath 2.0 Programmer's Reference

My apologies my result should look like the document below :
i have done the formation of one scheme but i get stuck when i need to get the element value and check it against the last E3 value to decide whether it goes in the current scheme or i need to create a new scheme.

my transformation creates one scheme and put all the tables under that scheme ,i want it to create a new scheme for each group of tables with the same value in Element E3.

 <?xml version="1.0" encoding="UTF-8" ?>
- <DisbursementsExtract ExtractDate="31/08/2006">
- <HEADER>
  <TRANSACTIONS />
  </HEADER>
- <SCHEME>
- <SCHEME_REFERENCE>
  <E1>101</E1>
  </SCHEME_REFERENCE>
- <Table>
  <E3>2007-01-05T00:00:00+00:00</E3>
  <E4>P</E4>
  <E5>4597</E5>
  <E6>RfD</E6>
  </Table>
- <Table>
  <E3>2007-01-05T00:00:00+00:00</E3>
  <E4>P</E4>
  <E5>4596</E5>
  <E6>RfD</E6>
  </Table>
  </SCHEME>
- <SCHEME>
- <SCHEME_REFERENCE>
  <E1>21</E1>
  </SCHEME_REFERENCE>
- <Table>
  <E3>2007-01-05T00:00:00+00:00</E3>
  <E4>P</E4>
  <E5>4605</E5>
  <E6>RfD</E6>
  </Table>
  </SCHEME>
  </DisbursementsExtract

>i get stuck when i need to get the element value and check it against the last E3 value to decide whether it goes in the current scheme or i need to create a new scheme

OK, thanks that makes it clear: you are doing grouping. Grouping is much easier in XSLT 2.0 using the xsl:for-each-group element. If you're stuck with XSLT 1.0, look at http://www.jenitennison.com/xslt/grouping for a range of techniques that can be applied.

Michael Kay
http://www.saxonica.com/
Author, XSLT Programmer's Reference and XPath 2.0 Programmer's Reference

Thanks MHKay i have been able to to do the first level of recursion using using the informaton from Jenitennison's website ...many thanks for your quick reply ..you've been a great help