Just putting this question back on top..I still need an answer 

regards

Andrew thanks for the reply.  Ive sorted out how to do what I want in XSL (outside of DNN) but dont know how to attach the DNN data source to the XSL?

This is what I'm doing

<?xml version="1.0" encoding="utf-8"?><!-- DWXMLSource="data.xml" -->

<!DOCTYPE xsl:stylesheet  [
 <!ENTITY nbsp   "&#160;">
 <!ENTITY copy   "&#169;">
 <!ENTITY reg    "&#174;">
 <!ENTITY trade  "&#8482;">
 <!ENTITY mdash  "&#8212;">
 <!ENTITY ldquo  "&#8220;">
 <!ENTITY rdquo  "&#8221;">
 <!ENTITY pound  "&#163;">
 <!ENTITY yen    "&#165;">
 <!ENTITY euro   "&#8364;">
]>
<xsl:stylesheet version="1.0" xmlns:xsl="http://www.w3.org/1999/XSL/Transform">
<xsl:output method="html" encoding="utf-8"/>
<xsl:include href="FillerCells.xsl"/>

<!-- Page configuration variables -->
<xsl:variable name="cellsPerRow" select="3"/>
<xsl:variable name="imageWidth" select="120"/>
<xsl:variable name="imageHeight" select="160"/>
<xsl:template match="/">

<table border="1" cellspacing="3" cellpadding="3">
     
     <xsl:apply-templates select="DocumentElement"/>
    </table>

</xsl:template>

<!-- Build Careers List Rows -->
<xsl:template match="DocumentElement">
 <xsl:for-each select="QueryResults[position() mod $cellsPerRow = 1]">
  <tr>
  <xsl:apply-templates
   select=".|following-sibling::QueryResults[position() &lt; $cellsPerRow]"/>
  </tr>
 </xsl:for-each>
</xsl:template>

<!-- Build Careers List Cells -->
<xsl:template match="QueryResults">
 <td class="PhotoCell" align="center">
   
   
    <div align="center" class="CareerButtons">
   
<table border="1" cellspacing="0" cellpadding="0">
  <tr>
    <td width="8px"  class="BL_ButtonLeft"></td>
    <td class="BL-buttonLable_BG">
   
           <a class="ButtonLink"><xsl:attribute name="href">../default.aspx?tabid=<xsl:value-of select="TabID" /></xsl:attribute><xsl:value-of select="TabName" /></a>
   
    </td>
    <td width="7px" class="BL_ButtonRight"></td>
  </tr>
</table>

</div>
   
  
  <br clear="all"/>
  </td>
 <xsl:if test="(position() = last()) and (position() &lt; $cellsPerRow)">
  <xsl:call-template name="FillerCells">
   <xsl:with-param name="cellCount" select="$cellsPerRow - position()"/>
  </xsl:call-template>
 </xsl:if>
</xsl:template>

</xsl:stylesheet>

But when I try to use it in DNN I get the following error

For security reasons DTD is prohibited in this XML document. To enable DTD processing set the ProhibitDtd property on XmlReaderSettings to false and pass the settings into XmlReader.Create method.

i have no Idea what that mean and how to fix it..

1. So how do I pass the DNN datasource to my XLS?
2. Can I use the XSL in DNN reports that way I'm doing it?
3. How do I fix the DTD  issue/? or is it caued by the other problems?

regards