XML to XML tranformation using XSLT

In this example I am transforming an XML using XSLT by modifying certain child elements. In coming XML message:

<?xml version="1.0" encoding="utf-8"?><?xml-stylesheet type="text/xsl" href="/xsl/error.xsl"?>
<outtask_error>
    <server>
        <name>RSDC-C12</name>
    </server>
    <application>
        <name>Jobs</name>
        <version>2012_06_15</version>
        <prod_status>qa</prod_status>
        <datacenter_location>rtwa3</datacenter_location>
        <request_id>n6dft440-8049-4dff-982a-ee05abc8433</request_id>
    </application>
    <error time="2014-02-06T20:01:05" timezone="Pacific Standard Time">
        <error_id>aab10-825-4a52d-a261-7a845262f</error_id>
        <error_default_source>ICSYC</error_default_source>
        <request_id>b2263a40-8049-4dff-942a-ee05ef3f8433</request_id>
        <error_source>ICSync</error_source>
        <error_description>Connection Entity:abc no DB name is not configured</error_description>
        <stack_trace>at Company.Core.Sync.GetConnectionInfo...
        </stack_trace>
    </error>
    <server_variables>
        <param name="SERVER_NAME">RSDC-C12</param>
        <param name="SCRIPT_NAME">C:\Sync.exe</param>
        <param name="QUERY_STRING">Sync.exe Day1</param>
    </server_variables>
    <Error_Context>
        <param name="databasename">Company_MT</param>
        <param name="error_defaultsource">SYS</param>
        <param name="error_defaultapplicationname">Jobs</param>
        <param name="requestid">b8943a40-1349-4dff-232a-ee05ef523452342f</param>
        <param name="dbservername">fabc-sql02,1420</param>
    </Error_Context>
</outtask_error>

XSLT for the transformation:

<?xml version="1.0" encoding="ISO-8859-1"?>
<xsl:stylesheet version="1.0" xmlns:xsl="http://www.w3.org/1999/XSL/Transform">

    <xsl:output method="xml"/>

    <xsl:template match="@*|node()">
        <xsl:copy>
            <xsl:apply-templates select="@*|node()"/>
        </xsl:copy>
    </xsl:template>

    <xsl:template match="outtask_error/server_variables">
        <server_variables>
            <xsl:for-each select="param">
                <xsl:text disable-output-escaping="yes"><</xsl:text><xsl:value-of select="./@name"/><xsl:text disable-output-escaping="yes">></xsl:text>
                <xsl:value-of select="."/>
                <xsl:text disable-output-escaping="yes"><</xsl:text>/<xsl:value-of select="./@name"/><xsl:text disable-output-escaping="yes">></xsl:text>
            </xsl:for-each>
        </server_variables>
    </xsl:template>

    <xsl:template match="outtask_error/Error_Context">
        <Error_Context>
            <xsl:for-each select="param">
                <xsl:text disable-output-escaping="yes"><</xsl:text><xsl:value-of select="./@name"/><xsl:text disable-output-escaping="yes">></xsl:text>
                <xsl:value-of select="."/>
                <xsl:text disable-output-escaping="yes"><</xsl:text>/<xsl:value-of select="./@name"/><xsl:text disable-output-escaping="yes">></xsl:text>
            </xsl:for-each>
        </Error_Context>
    </xsl:template>

</xsl:stylesheet>

Out going XML:

<?xml version="1.0" encoding="UTF-8"?><?xml-stylesheet type="text/xsl" href="/xsl/error.xsl"?><outtask_error>
    <server>
        <name>RSDC-C12</name>
    </server>
    <application>
        <name>Jobs</name>
        <version>2012_06_15</version>
        <prod_status>qa</prod_status>
        <datacenter_location>rtwa3</datacenter_location>
        <request_id>n6dft440-8049-4dff-982a-ee05abc8433</request_id>
    </application>
    <error time="2014-02-06T20:01:05" timezone="Pacific Standard Time">
        <error_id>aab10-825-4a52d-a261-7a845262f</error_id>
        <error_default_source>ICSYC</error_default_source>
        <request_id>b2263a40-8049-4dff-942a-ee05ef3f8433</request_id>
        <error_source>ICSync</error_source>
        <error_description>Connection Entity:abc no DB name is not configured</error_description>
        <stack_trace>at Company.Core.Sync.GetConnectionInfo...
        </stack_trace>
    </error>
    <server_variables><SERVER_NAME>RSDC-C12</SERVER_NAME><SCRIPT_NAME>C:\Sync.exe</SCRIPT_NAME><QUERY_STRING>Sync.exe Day1</QUERY_STRING></server_variables>
    <Error_Context><databasename>Company_MT</databasename><error_defaultsource>SYS</error_defaultsource><error_defaultapplicationname>Jobs</error_defaultapplicationname><requestid>b8943a40-1349-4dff-232a-ee05ef523452342f</requestid><dbservername>fabc-sql02,1420</dbservername></Error_Context>
</outtask_error>