schema and xsl not working together

hi ,

         I am just learning xml
         I have attached the xml , schema and xsl documents
         They dont function together.That is the schema validates the xml 
when the xsl is not applied .
         So does the xsl get applied , when the schema is not applied to 
the xml document

         Can anyone please help <<coreport-old.xml>> <<coreportSchema.xml>> 
<<alert.txt>>
Regards
Pooja