XSL to transform XHTML data into fragments

Hi,

I wonder if anyone know how to use XSL to transform an XHTML file that contains certain blocks of text within the <td> tags, for example:

<td valign="TOP" align="LEFT" bgcolor="#FFFFFF" width="260" class="WhiteBackBlackText">Is London the best place?</td>
where I try to extract "Is London the best place?" to a data section named "<tag>", so that the result will be:

<tag>Is London the best place?</tag>

I know you can do certain apply-templates functions, but just do not know how I can get the data from an XHTML extract such as a piece of table data within a table.

The following code will get me back all the text of all the table data fragments that exists to put into the <tag></tag> section.

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

<xsl:template match="/">
<root>
<xsl:apply-templates select="table/tr"/>
</root>
</xsl:template>

<xsl:template match="td">
<tag><xsl:value-of select="." /></tag>
</xsl:template>
</xsl:stylesheet>

Am I on the right lines?