> <xsl:copy-of select="document('testForm.xml')"/></foo>
document() takes a URI Reference as its argument. That's interpreted in
terms of the Base URI of the stylesheet XML document this reference
appeared in. That's probably where things are getting confused.
To test this, try an absolute reference to the file, such as document
('file:///mydirectory/testForm.xml') or document
('http://mysystem/mydirectory/testForm.xml'), and see if that works. If it
does, then the conversion from relative to absolute URI is what's biting
you, and you need to think about how the base URI of the stylesheet has
been set and how that combines with the relative URI reference.
