Parsing a string to xml and load into document variable

I am writing a stylesheet to convert un-parsed HTML to XSl-FO. I will get a element that has un-parsed html. I want to load the contents of Comment into a document variable:

<Comment>&lt;div align="left"&gt;&lt;font size="4" color="#FF0000"&gt;This is &lt;i&gt;&lt;b&gt;&lt;u&gt;some &lt;/u&gt;&lt;/b&gt;&lt;/i&gt;sample html again&lt;/font&gt;&lt;br&gt;&lt;/div&gt;</Comment>

Which will look like this

<div align="left"><font size="4" color="#FF0000">This is <i><b><u>some </u></b></i>sample html again</font></div>

or formatted:

<div align="left">
    <font size="4" color="#FF0000">This is <i>
            <b>
                <u>some </u>
            </b>
        </i>sample html again</font>
</div>

And try to access the elements with:

<xsl:variable name="html">
    <xsl:value-of select="Comment" disable-output-escaping="yes"/>
</xsl:variable>
<xsl:value-of select="$html//b"/>

But this of course is not working. Is this possible with xslt 1.0?