Consider the following xsl:

---------------------XSL---------------------
<?xml version="1.0" encoding="UTF-8"?>
<xsl:stylesheet xmlns:xsl="http://www.w3.org/1999/XSL/Transform" version="1.0">
                <xsl:template match="/">
                               <root xmlns="ns1">
                                               <xsl:call-template name="transform"/>
                               </root>
                </xsl:template>
                <xsl:template name="transform">
                <test xmlns=""/>
                </xsl:template>
</xsl:stylesheet>
---------------------End of XSL---------------------


Transform an XML snippet like this (just a dummy):
<?xml version="1.0" encoding="UTF-8"?><aaa></aaa>

The result with the current XSLTC is:
<?xml version="1.0" encoding="UTF-8"?><root xmlns="ns1"><test/></root>

This would not undeclare the default namespace “ns1”, coming from the element “root”, in the element “test”.
It should be:
<?xml version="1.0" encoding="UTF-8"?><root xmlns="ns1"><test xmlns=""/></root>