If your attempt to solve the problem didn't succeed, it's best to show us your attempt, so that we can see where your misunderstanding of the spec lies. Don't be frightened to show your work to others, it's the best way of getting feedback and learning from it.
However, "nested loops" is the wrong paradigm when you're designing XSLT code. Learn to use template rules: start by writing a template rule for each kind of element, that does something with that element and then calls xsl:apply-templates to process the child elements, thus recursing down the XML tree structure.
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Michael Kay
http://www.saxonica.com/
Author, XSLT 2.0 and XPath 2.0 Programmer\'s Reference
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