I'll let you in on a secret, http://search.cpan.org/grep?cpanid=SHLOMIF&release=XML-LibXSLT-1.94&string=expand&i=1&n=1&C=0 
t/06entities.t

12:# $parser->expand_entities(1);

t/15misc.t

17:  $parser->expand_entities(0);

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In reply to Re: Preserve Entity References in XSLT using XML::LibXSLT by Anonymous Monk
in thread Preserve Entity References in XSLT using XML::LibXSLT by admiral_grinder

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