The Apache XML project have announced the first release of Xalan-Java 2, boasting redesigned internals and increased conformance to the XSLT 1.0 Recommendation.
In particular, Xalan-J 2 implements some key Java/XML APIs, including the transformation part of the Java API for XML Processing v1.1 (final draft). A SAX event model is supported, which allows Xalan-J 2.0 to provide incremental production of output.
Xalan-J's new "more understandable" API, TrAX (Transformation API for XML), provides a framework for plugging transformers and XML parsers into XML-aware applications.
In addition to XSLT 1.0 support, Xalan-J 2 provides extensions including SQL access via JDBC, result-tree to node-set conversion, set operations on node-sets and string tokenization.
Xalan-J 2.0 can be obtained from the Apache XML Project.