I think you have not done a very good job with the cut and paste here, as this bit of XSLT makes no sense.
Assuming that businessfiles.xml contains a list of file elements with href attributes then you can do something like this:
Code:
<xsl:template match="test">
<xsl:variable name="mainfile" select="document('businessfiles.xml')"/>
<xsl:for-each select="$mainfile/file">
<xsl:variable name="file" select="document(@href)"/>
? <xsl:value-of select="$file/parentnav/pagenav"/> ?
</xsl:for-each>
</xsl:template>
/- Sam Judson : Wrox Technical Editor -/