diff --git a/src/org/apache/xalan/xsltc/dom/ArrayNodeListIterator.java b/src/org/apache/xalan/xsltc/dom/ArrayNodeListIterator.java
new file mode 100755
index 0000000..31a8eb4
--- /dev/null
+++ b/src/org/apache/xalan/xsltc/dom/ArrayNodeListIterator.java
@@ -0,0 +1,89 @@
+/*
+ * Licensed to the Apache Software Foundation (ASF) under one
+ * or more contributor license agreements. See the NOTICE file
+ * distributed with this work for additional information
+ * regarding copyright ownership. The ASF licenses this file
+ * to you under the Apache License, Version 2.0 (the  "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *     http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+/*
+ * $Id$
+ */
+
+package org.apache.xalan.xsltc.dom;
+
+import org.apache.xml.dtm.DTMAxisIterator;
+
+public class ArrayNodeListIterator implements DTMAxisIterator  {
+
+    private int _pos = 0;
+
+    private int _mark = 0;
+
+    private int _nodes[];
+
+    private static final int[] EMPTY = { };
+
+    public ArrayNodeListIterator(int[] nodes) {
+	_nodes = nodes;
+    }
+
+    public int next() {
+	return _pos < _nodes.length ? _nodes[_pos++] : END;
+    }
+
+    public DTMAxisIterator reset() {
+	_pos = 0;
+	return this;
+    }
+
+    public int getLast() {
+	return _nodes.length;
+    }
+
+    public int getPosition() {
+	return _pos;
+    }
+
+    public void setMark() {
+	_mark = _pos;
+    }
+
+    public void gotoMark() {
+	_pos = _mark;
+    }
+
+    public DTMAxisIterator setStartNode(int node) {
+	if (node == END) _nodes = EMPTY;
+	return this;
+    }
+
+    public int getStartNode() {
+	return END;
+    }
+
+    public boolean isReverse() {
+	return false;
+    }
+
+    public DTMAxisIterator cloneIterator() {
+	return new ArrayNodeListIterator(_nodes);
+    }
+
+    public void setRestartable(boolean isRestartable) {
+    }
+
+    public int getNodeByPosition(int position) {
+	return _nodes[position - 1];
+    }
+
+}
diff --git a/src/org/apache/xalan/xsltc/runtime/BasisLibrary.java b/src/org/apache/xalan/xsltc/runtime/BasisLibrary.java
index e365ae1..bccc38b 100644
--- a/src/org/apache/xalan/xsltc/runtime/BasisLibrary.java
+++ b/src/org/apache/xalan/xsltc/runtime/BasisLibrary.java
@@ -38,12 +38,17 @@
 import org.apache.xalan.xsltc.dom.MultiDOM;
 import org.apache.xalan.xsltc.dom.SingletonIterator;
 import org.apache.xalan.xsltc.dom.StepIterator;
+import org.apache.xalan.xsltc.dom.ArrayNodeListIterator;
+import org.apache.xml.dtm.DTM;
 import org.apache.xml.dtm.DTMAxisIterator;
 import org.apache.xml.dtm.DTMManager;
 import org.apache.xml.dtm.ref.DTMDefaultBase;
+import org.apache.xml.dtm.ref.DTMNodeProxy;
 
 import org.w3c.dom.DOMException;
+import org.w3c.dom.Attr;
 import org.w3c.dom.Document;
+import org.w3c.dom.Element;
 import org.w3c.dom.NodeList;
 import org.xml.sax.SAXException;
 import org.apache.xml.serializer.NamespaceMappings;
@@ -1097,90 +1102,42 @@
     }
     
     /**
-     * Utility function used to copy a node list to be under a parent node.
+     * In a perfect world, this would be the implementation for
+     * nodeList2Iterator. In reality, though, this causes a
+     * ClassCastException in getDTMHandleFromNode because SAXImpl is
+     * not an instance of DOM2DTM. So we use the more lengthy
+     * implementation below until this issue has been addressed.
+     *
+     * @see org.apache.xml.dtm.ref.DTMManagerDefault#getDTMHandleFromNode
      */
-    private static void copyNodes(org.w3c.dom.NodeList nodeList, 
-	org.w3c.dom.Document doc, org.w3c.dom.Node parent)
+    private static DTMAxisIterator nodeList2IteratorUsingHandleFromNode(
+                                        org.w3c.dom.NodeList nodeList,
+                                    	Translet translet, DOM dom)
     {
-        final int size = nodeList.getLength();
-
-          // copy Nodes from NodeList into new w3c DOM
-        for (int i = 0; i < size; i++) 
-        {
-            org.w3c.dom.Node curr = nodeList.item(i);
-            int nodeType = curr.getNodeType();
-            String value = null;
-            try {
-                value = curr.getNodeValue();
-            } catch (DOMException ex) {
-                runTimeError(RUN_TIME_INTERNAL_ERR, ex.getMessage());
-                return;
-            }
-            
-            String nodeName = curr.getNodeName();
-            org.w3c.dom.Node newNode = null; 
-            switch (nodeType){
-                case org.w3c.dom.Node.ATTRIBUTE_NODE:
-                     newNode = doc.createAttributeNS(curr.getNamespaceURI(), 
-			nodeName);
-                     break;
-                case org.w3c.dom.Node.CDATA_SECTION_NODE: 
-                     newNode = doc.createCDATASection(value);
-                     break;
-                case org.w3c.dom.Node.COMMENT_NODE: 
-                     newNode = doc.createComment(value);
-                     break;
-                case org.w3c.dom.Node.DOCUMENT_FRAGMENT_NODE: 
-                     newNode = doc.createDocumentFragment();
-                     break;
-                case org.w3c.dom.Node.DOCUMENT_NODE:
-                     newNode = doc.createElementNS(null, "__document__");
-                     copyNodes(curr.getChildNodes(), doc, newNode);
-                     break;
-                case org.w3c.dom.Node.DOCUMENT_TYPE_NODE:
-                     // nothing?
-                     break;
-                case org.w3c.dom.Node.ELEMENT_NODE: 
-                     // For Element node, also copy the children and the 
-		     // attributes.
-                     org.w3c.dom.Element element = doc.createElementNS(
-			curr.getNamespaceURI(), nodeName);
-                     if (curr.hasAttributes())
-                     {
-                       org.w3c.dom.NamedNodeMap attributes = curr.getAttributes();
-                       for (int k = 0; k < attributes.getLength(); k++) {
-                         org.w3c.dom.Node attr = attributes.item(k);
-                         element.setAttributeNS(attr.getNamespaceURI(), 
-                                 attr.getNodeName(), attr.getNodeValue());
-                       }
-                     }
-                     copyNodes(curr.getChildNodes(), doc, element);
-                     newNode = element;
-                     break;
-                case org.w3c.dom.Node.ENTITY_NODE: 
-                     // nothing ? 
-                     break;
-                case org.w3c.dom.Node.ENTITY_REFERENCE_NODE: 
-                     newNode = doc.createEntityReference(nodeName);
-                     break;
-                case org.w3c.dom.Node.NOTATION_NODE: 
-                     // nothing ? 
-                     break;
-                case org.w3c.dom.Node.PROCESSING_INSTRUCTION_NODE: 
-                     newNode = doc.createProcessingInstruction(nodeName,
-                        value);
-                     break;
-                case org.w3c.dom.Node.TEXT_NODE: 
-                     newNode = doc.createTextNode(value);
-                     break;
-            }
-            try {
-                parent.appendChild(newNode);
-            } catch (DOMException e) {
-                runTimeError(RUN_TIME_INTERNAL_ERR, e.getMessage());
-                return;
-            }           
-        }
+	final int n = nodeList.getLength();
+	final int[] dtmHandles = new int[n];
+	DTMManager dtmManager = null;
+	if (dom instanceof MultiDOM)
+	    dtmManager = ((MultiDOM) dom).getDTMManager();
+	for (int i = 0; i < n; ++i) {
+	    org.w3c.dom.Node node = nodeList.item(i);
+	    int handle;
+	    if (dtmManager != null) {
+		handle = dtmManager.getDTMHandleFromNode(node);
+	    }
+	    else if (node instanceof DTMNodeProxy
+		     && ((DTMNodeProxy) node).getDTM() == dom) {
+		handle = ((DTMNodeProxy) node).getDTMNodeNumber();
+	    }
+	    else {
+		runTimeError(RUN_TIME_INTERNAL_ERR, "need MultiDOM");
+		return null;
+	    }
+	    dtmHandles[i] = handle;
+	    System.out.println("Node " + i + " has handle 0x" +
+			       Integer.toString(handle, 16));
+	}
+	return new ArrayNodeListIterator(dtmHandles);
     }
 
     /**
@@ -1191,26 +1148,93 @@
                                         org.w3c.dom.NodeList nodeList,
                                     	Translet translet, DOM dom) 
     {
-	// w3c NodeList -> w3c DOM
+	// First pass: build w3c DOM for all nodes not proxied from our DOM.
+	//
+	// Notice: this looses some (esp. parent) context for these nodes,
+	// so some way to wrap the original nodes inside a DTMAxisIterator
+	// might be preferable in the long run.
+	int n = 0; // allow for change in list length, just in case.
 	Document doc = null;
-	try {
-	    doc = ((AbstractTranslet) translet).newDocument("", "__top__");
-	} 
-        catch (javax.xml.parsers.ParserConfigurationException e) {
-	    runTimeError(RUN_TIME_INTERNAL_ERR, e.getMessage());
-            return null;
+	DTMManager dtmManager = null;
+	int[] proxyNodes = new int[nodeList.getLength()];
+	if (dom instanceof MultiDOM)
+	    dtmManager = ((MultiDOM) dom).getDTMManager();
+	for (int i = 0; i < nodeList.getLength(); ++i) {
+	    org.w3c.dom.Node node = nodeList.item(i);
+	    if (node instanceof DTMNodeProxy) {
+		DTMNodeProxy proxy = (DTMNodeProxy)node;
+		DTM nodeDTM = proxy.getDTM();
+		int handle = proxy.getDTMNodeNumber();
+		boolean isOurDOM = (nodeDTM == dom);
+		if (!isOurDOM && dtmManager != null) {
+		    try {
+			isOurDOM = (nodeDTM == dtmManager.getDTM(handle));
+		    }
+		    catch (ArrayIndexOutOfBoundsException e) {
+			// invalid node handle, so definitely not our doc
+		    }
+		}
+		if (isOurDOM) {
+		    proxyNodes[i] = handle;
+		    ++n;
+		    continue;
+		}
+	    }
+	    proxyNodes[i] = DTM.NULL;
+	    int nodeType = node.getNodeType();
+	    if (doc == null) {
+		if (dom instanceof MultiDOM == false) {
+		    runTimeError(RUN_TIME_INTERNAL_ERR, "need MultiDOM");
+		    return null;
+		}
+		try {
+		    AbstractTranslet at = (AbstractTranslet) translet;
+		    doc = at.newDocument("", "__top__");
+		}
+		catch (javax.xml.parsers.ParserConfigurationException e) {
+		    runTimeError(RUN_TIME_INTERNAL_ERR, e.getMessage());
+		    return null;
+		}
+	    }
+	    // Use one dummy element as container for each node of the
+	    // list. That way, it is easier to detect resp. avoid
+	    // funny things which change the number of nodes,
+	    // e.g. auto-concatenation of text nodes.
+	    Element mid;
+	    switch (nodeType) {
+		case org.w3c.dom.Node.ELEMENT_NODE:
+		case org.w3c.dom.Node.TEXT_NODE:
+		case org.w3c.dom.Node.CDATA_SECTION_NODE:
+		case org.w3c.dom.Node.COMMENT_NODE:
+		case org.w3c.dom.Node.ENTITY_REFERENCE_NODE:
+		case org.w3c.dom.Node.PROCESSING_INSTRUCTION_NODE:
+		    mid = doc.createElementNS(null, "__dummy__");
+		    mid.appendChild(doc.importNode(node, true));
+		    doc.getDocumentElement().appendChild(mid);
+		    ++n;
+		    break;
+		case org.w3c.dom.Node.ATTRIBUTE_NODE:
+		    // The mid element also serves as a container for
+		    // attributes, avoiding problems with conflicting
+		    // attributes or node order.
+		    mid = doc.createElementNS(null, "__dummy__");
+		    mid.setAttributeNodeNS((Attr)doc.importNode(node, true));
+		    doc.getDocumentElement().appendChild(mid);
+		    ++n;
+		    break;
+		default:
+		    // Better play it safe for all types we aren't sure we know
+		    // how to deal with.
+		    runTimeError(RUN_TIME_INTERNAL_ERR,
+				 "Don't know how to convert node type "
+				 + nodeType);
+	    }
 	}
-        
-        // Copy all the nodes in the nodelist to be under the top element
-        copyNodes(nodeList, doc, doc.getDocumentElement());
 
         // w3cDOM -> DTM -> DOMImpl
-	if (dom instanceof MultiDOM) {
-            final MultiDOM multiDOM = (MultiDOM) dom;
-
-	    DTMDefaultBase dtm = (DTMDefaultBase)((DOMAdapter)multiDOM.getMain()).getDOMImpl();
-	    DTMManager dtmManager = dtm.getManager();
-	    
+	DTMAxisIterator iter = null, childIter = null, attrIter = null;
+	if (doc != null) {
+	    final MultiDOM multiDOM = (MultiDOM) dom;
 	    DOM idom = (DOM)dtmManager.getDTM(new DOMSource(doc), false,
 					      null, true, false);
 	    // Create DOMAdapter and register with MultiDOM
@@ -1223,16 +1247,57 @@
 
 	    DTMAxisIterator iter1 = idom.getAxisIterator(Axis.CHILD);
 	    DTMAxisIterator iter2 = idom.getAxisIterator(Axis.CHILD);
-            DTMAxisIterator iter = new AbsoluteIterator(
+            iter = new AbsoluteIterator(
                 new StepIterator(iter1, iter2));
 
  	    iter.setStartNode(DTMDefaultBase.ROOTNODE);
-	    return iter;
+
+	    childIter = idom.getAxisIterator(Axis.CHILD);
+	    attrIter = idom.getAxisIterator(Axis.ATTRIBUTE);
 	}
-        else {
-	    runTimeError(RUN_TIME_INTERNAL_ERR, "nodeList2Iterator()");
-	    return null;
-        }
+
+	// Second pass: find DTM handles for every node in the list.
+	int[] dtmHandles = new int[n];
+	n = 0;
+	for (int i = 0; i < nodeList.getLength(); ++i) {
+	    if (proxyNodes[i] != DTM.NULL) {
+		dtmHandles[n++] = proxyNodes[i];
+		continue;
+	    }
+	    org.w3c.dom.Node node = nodeList.item(i);
+	    DTMAxisIterator iter3 = null;
+	    int nodeType = node.getNodeType();
+	    switch (nodeType) {
+		case org.w3c.dom.Node.ELEMENT_NODE:
+		case org.w3c.dom.Node.TEXT_NODE:
+		case org.w3c.dom.Node.CDATA_SECTION_NODE:
+		case org.w3c.dom.Node.COMMENT_NODE:
+		case org.w3c.dom.Node.ENTITY_REFERENCE_NODE:
+		case org.w3c.dom.Node.PROCESSING_INSTRUCTION_NODE:
+		    iter3 = childIter;
+		    break;
+		case org.w3c.dom.Node.ATTRIBUTE_NODE:
+		    iter3 = attrIter;
+		    break;
+		default:
+		    // Should not happen, as first run should have got all these
+		    throw new InternalRuntimeError("Mismatched cases");
+	    }
+	    if (iter3 != null) {
+		iter3.setStartNode(iter.next());
+		dtmHandles[n] = iter3.next();
+		// For now, play it self and perform extra checks:
+		if (dtmHandles[n] == DTMAxisIterator.END)
+		    throw new InternalRuntimeError("Expected element missing at " + i);
+		if (iter3.next() != DTMAxisIterator.END)
+		    throw new InternalRuntimeError("Too many elements at " + i);
+		++n;
+	    }
+	}
+	if (n != dtmHandles.length)
+	    throw new InternalRuntimeError("Nodes lost in second pass");
+
+	return new ArrayNodeListIterator(dtmHandles);
     }
 
     /**
diff --git a/src/org/apache/xalan/xsltc/runtime/InternalRuntimeError.java b/src/org/apache/xalan/xsltc/runtime/InternalRuntimeError.java
new file mode 100755
index 0000000..463aef5
--- /dev/null
+++ b/src/org/apache/xalan/xsltc/runtime/InternalRuntimeError.java
@@ -0,0 +1,34 @@
+/*
+ * Licensed to the Apache Software Foundation (ASF) under one
+ * or more contributor license agreements. See the NOTICE file
+ * distributed with this work for additional information
+ * regarding copyright ownership. The ASF licenses this file
+ * to you under the Apache License, Version 2.0 (the  "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *     http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+/*
+ * $Id$
+ */
+
+package org.apache.xalan.xsltc.runtime;
+
+/**
+ * Class to express failed assertions and similar for the xsltc runtime.
+ * As java.lang.AssertionError was introduced in JDK 1.4 we can't use that yet.
+ */
+public class InternalRuntimeError extends Error {
+
+    public InternalRuntimeError(String message) {
+        super(message);
+    }
+
+}