XML : Formatting colors/bgcolors/bold/underline specified in XML

Coming from this XML :

  <log>          <found>              <color bgcolor="red">This is a silly <u>dummy</u> text with <color color="green">colored</colored> words and some <b>emphasized</b> ones</color>          </found>          <notfound>              This is a silly <color color="red">stupid</color> text          </notfound>  </log>    

I must produce this HTML :

  <p>Found : <pre><span style="background-color:red;">This is a silly <u>dummy</u> text with <span style="color:green;">colored</span> words and some <b>emphasized</b> ones</span></pre></p>  <p>Not Found : <pre>This is a silly <span style="color:red;">stupid</span> text</pre></p>    

I tried to achieve this with :

  <xsl:stylesheet version="2.0" xmlns:xsl="http://www.w3.org/1999/XSL/Transform">      <xsl:output method="html" encoding="UTF-8"/>        <xsl:apply-templates select="/log"/>        <xsl:template match="log">          <xsl:apply-templates select="found"/>          <xsl:apply-templates select="notfound"/>      </xsl:template>        <xsl:template match="found">          <xsl:if test=". != ''">              <p>Found : <pre><xsl:apply-templates name="./color"/></pre></p>          </xsl:if>      </xsl:template>        <xsl:template match="notfound">          <xsl:if test=". != ''">              <p>Not found : <pre><xsl:apply-templates name="./color"/></pre></p>          </xsl:if>      </xsl:template>        <xsl:template match="*/color">          <span>              <xsl:attribute name="style">                  <xsl:if test="./@color != ''">                      color:<xsl:value-of select="./@color"/>;                  </xsl:if>                  <xsl:if test="./@bgcolor != ''">                      background-color:<xsl:value-of select="./@bgcolor"/>;                   </xsl:attribute>              <xsl:apply-templates select="./color"/>              <xsl:copy-of select="text()"/>          </span>      </xsl:template>    </xsl:stylesheet>    

But it fails by stripping everything that may be within <u> or <b> or <i> it may found (see <found>) or putting every colored stuff before all other content (see <notfound>) :

  <p>Found : <pre><span style="background-color:red;">This is a silly  text with <span style="color:green;">colored</span> words and some  ones</span></pre></p>  <p>Not Found : <pre><span style="color:red;">stupid</span>This is a silly  text</pre></p>    

Where am I wrong ?

Many thanks for any help !