Currently, this is possible by using (for me) C# to pull the SQLXML content from the DB (I'm using T-SQL, ie: MSSQL http://msdn.microsoft.com/en-us/library/ms345117(SQL.90).aspx), processing it using the .NET XML transformation API (http://www.csharpfriends.com/Articles/getArticle.aspx?articleID=63) and pushing the produced XHTML to the browser.
This approach is good because any extraneous processing or user values, validation, security and browser differences can be catered for, while removing strain on the browser. It's important to note that asking the client to do the XSL transformation isn't a great idea because browsers like Mobile Safari will ask a remote service to do the transform, which slows things down and will obfuscate a lot of data away from your app.
However, if you want to go ahead with having the browser do the heavy XSLT lifting, the best place to start is:
- Get the browser to do the transform: http://www.w3schools.com/xsl/xsl_transformation.asp
- D. Pawson XSLT help: http://www.dpawson.co.uk/xsl/sect1/sect1.html