[xslt] Weird behavior of the != XPath operator

The problem is that the 'and' is being treated as an 'or'.

No, the problem is that you are using the XPath != operator and you aren't aware of its "weird" semantics.

Solution:

Just replace the any x != y expressions with a not(x = y) expression.

In your specific case:

Replace:

<xsl:when test="$AccountNumber != '12345' and $Balance != '0'">

with:

<xsl:when test="not($AccountNumber = '12345') and not($Balance = '0')">

Explanation:

By definition whenever one of the operands of the != operator is a nodeset, then the result of evaluating this operator is true if there is a node in the node-set, whose value isn't equal to the other operand.

So:

 $someNodeSet != $someValue

generally doesn't produce the same result as:

 not($someNodeSet = $someValue)

The latter (by definition) is true exactly when there isn't a node in $someNodeSet whose string value is equal to $someValue.

Lesson to learn:

Never use the != operator, unless you are absolutely sure you know what you are doing.