master.xml

<data>
  <hello>paste your xml here</hello>
  <entry><title message="error"></title></entry>
  <entry><title message="error"></title></entry>
  <entry><title message="error"></title></entry>
  <entry><title message="error"></title></entry>
</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="/">
    <hi>
      <xsl:value-of select="data/hello" />
    </hi>
    <xsl:apply-templates select="entry" mode="errors"/>
  </xsl:template>
 
 
<xsl:template match="entry" mode="errors">
  
  <xsl:if test="title/@message = 'error'">
   <xsl:call-template name="dosomething">
    <xsl:with-param name="error" select="1"/>
    <xsl:with-param name="count" select="position()"/>
   <!-- any any other initial data needed to be passed -->
     <xsl:value-of select="$count"/>
   </xsl:call-template>
  </xsl:if>
  
</xsl:template>


<xsl:template name="dosomething">
   <xsl:param name="error"/>
   <xsl:param name="count"/>
   <!-- and others as required -->
   <xsl:choose>
     <xsl:when test="$error = 1">
       <!-- output the last result, or nothing -->
       <xsl:value-of select="$error"/>
     </xsl:when>
     <xsl:otherwise>
       <!-- output whatever is needed here -->
       <xsl:call-template name="dosomething">
         <xsl:with-param name="error" select="$error"/>
         <xsl:with-param name="count" select="position()"/>
         <!-- any any other modified data needed to be passed -->
       </xsl:call-template>
     </xsl:otherwise>
   </xsl:choose>
</xsl:template>
  
</xsl:stylesheet>