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You use the Generate Transformation dialog box to specify the desired transformation language (XSLT or XQuery) you want Stylus Studio to use when generating code for your XML Publisher report.
Transformation Language
Whether you want Stylus Studio to generate the XML transformation using XQuery 1.0, XSLT 1.0, or XSLT 2.0.
Save Into
The URL to which you want to write the generated XQuery or XSLT. Stylus Studio uses the .report file name as the default for the generated file.