howto make embedded stylesheet work

I copied the example from:

http://www.w3.org/TR/xslt#section-Embedding-Stylesheets

but that didn't work in firefox which gave error message:

Error loading stylesheet: Parsing an XSLT stylesheet failed.

In geleon, it just showed a blank page.  I also tried the example
in:

http://sources.redhat.com/ml/xsl-list/2000-07/msg01048.html

however, firefox responded:

Error loading stylesheet: An unknown error has occurred (805303f4)

The two xml files are attached.

Please, what am I doing wrong?