The W3C XSL Working Group has published the last call working draft of Extensible Stylesheet Language (XSL) Version 1.1. Despite the more generic name, this actually only covers XSL Formatting Objects, not XSL Transformations. New features in 1.1 include:
Comments are due by September 16.
Altova has released AltovaXML, a closed source, free-beer XML parser/XSLT engine for Windows. AltovaXML supports XSLT 1, XML Schemas, XQuery, XSLT 2, DTDs, and XML.