master.xml

<data>
  <workthumbimages>
    <section id="6" handle="work-images">work images</section>
    <entry id="126">
     <description>cartier-bresson</description>
      <image size="114 KB" path="/images" type="image/jpeg">
       <filename>hcb2.jpg</filename>
       <meta creation="2012-03-13T14:37:02+00:00" width="715" height="440" />
     </image>
      <project>
        <item id="8" handle="the-first-project" section-handle="work" section-name="work">the first project</item>
      </project>
    </entry>
    <entry id="29">
      <description>Sparrow Mail for iPhone…</description>
     <image size="unknown" path="/images" type="image/png">
        <filename>sparra.png</filename>
       <meta creation="2012-02-18T18:44:29+00:00" width="150" height="150" />
     </image>
      <project>
        <item id="27" handle="will-it-grid" section-handle="work" section-name="work">will it grid?</item>
      </project>
    </entry>
    <entry id="14">
      <description>Reeder app</description>
     <image size="unknown" path="/images" type="image/png">
        <filename>reeder.png</filename>
       <meta creation="2012-02-18T18:57:01+00:00" width="150" height="150" />
     </image>
      <project>
        <item id="13" handle="second-project" section-handle="work" section-name="work">second project</item>
     </project>
    </entry>
    <entry id="12">
      <description>pixels</description>
     <image size="27 KB" path="/images" type="image/png">
       <filename>flight.png</filename>
       <meta creation="2012-03-13T14:33:04+00:00" width="150" height="150" />
     </image>
      <project>
        <item id="8" handle="the-first-project" section-handle="work" section-name="work">the first project</item>
      </project>
    </entry>
    <entry id="11">
      <description>this is the first thumbnail</description>
      <image size="unknown" path="" type="image/png">
        <filename>welcome.png</filename>
        <meta creation="2012-02-18T18:42:12+00:00" width="150" height="150" />
     </image>
      <project>
        <item id="8" handle="the-first-project" section-handle="work" section-name="work">the first project</item>
      </project>
    </entry>
  </workthumbimages>
</data>

master.xsl

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

  <xsl:output method="xml" indent="yes" />

  <xsl:template match="data">
    <xsl:apply-templates select="workthumbimages/entry"/>
  </xsl:template>

  
  <xsl:template match="workthumbimages/entry">
    <div>
      
      <img src="/image/4/200/100{image/@path}/{image/filename}"/>
      
      </div>
  </xsl:template>
</xsl:stylesheet>