Unexpected .NET 1.1 XSLT Engine Behavior
Without regard to the indent setting of the output element or the use of xml:space="preserve", the .NET 1.1 XSLT engine drops one space between elements. This means that <foo/> <bar/> ends up <foo/><bar/>. The judicious use of the non-breaking space can come in handy here. For InfoPath users, the keyboard combo of Ctrl Shift Space produces the glyph for &nbsp;. This also works in Word and other Office System applications.