Need help in creating XSLT, i do have Source and Target XML
You need to assign a prefix to each namespace used by the source document, and use the appropriate prefix when addressing elements in the source document. Here's a correction of your stylesheet:
<xsl:stylesheet version="1.0"
xmlns:xsl="http://www.w3.org/1999/XSL/Transform"
xmlns:soap="http://schemas.xmlsoap.org/soap/envelope/"
xmlns:dir="http://schemas.microsoft.com/sharepoint/soap/directory/"
exclude-result-prefixes="soap dir">
<xsl:output method="xml" version="1.0" encoding="utf-8" indent="yes"/>
<xsl:template match="/">
<xsl:apply-templates select="soap:Envelope/soap:Body/dir:a/dir:b/dir:c/dir:d"/>
</xsl:template>
<xsl:template match="dir:d">
<d>
<xsl:for-each select="dir:e">
<e>
<xsl:value-of select="@MemberID"/>
</e>
</xsl:for-each>
</d>
</xsl:template>
</xsl:stylesheet>
This will produce the following result :
<?xml version="1.0" encoding="utf-8"?>
<d>
<e>1</e>
<e>2</e>
<e>3</e>
</d>
Of course, you could simplify this to:
<xsl:stylesheet version="1.0"
xmlns:xsl="http://www.w3.org/1999/XSL/Transform"
xmlns:soap="http://schemas.xmlsoap.org/soap/envelope/"
xmlns:dir="http://schemas.microsoft.com/sharepoint/soap/directory/"
exclude-result-prefixes="soap dir">
<xsl:output method="xml" version="1.0" encoding="utf-8" indent="yes"/>
<xsl:template match="/">
<d>
<xsl:for-each select="soap:Envelope/soap:Body/dir:a/dir:b/dir:c/dir:d/dir:e">
<e>
<xsl:value-of select="@MemberID"/>
</e>
</xsl:for-each>
</d>
</xsl:template>
</xsl:stylesheet>
To achieve the required output, change:
<e>
<xsl:value-of select="@MemberID"/>
</e>
to:
<e ID="{@MemberID}"/>