hyperlinks and images in xml/xslt

I am new with sml/xslt and need to know how to (1) add href links from data stored in an xml element, and (2) include an image from a local directory.

Any help is much appreciated!

<img src="imagename.gif"/>
<br/>
<a href="{//url}"><xsl:value-of select="//url"/></a>


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url is the ur tag name from which u want to get value
like this in xml

<url>www.yahoo.co.uk</url>

thank u
niha