title: Why "XSLT8690: XSLT processing failed" when processing local xml + xslt
body: <p>Extensive research did not lead me to understanding why the below happens - I hope that the SO community can help...  </p>
  
  <p>I copied the files mentioned in <a href="https://stackoverflow.com/questions/10457111/why-html1113-document-mode-restart-from-ie9-standards-to-quirks">Why HTML1113: Document mode restart from IE9 Standards to Quirks</a> to local filesystem and opened the xml in IE9 (by specifying the path <code>D:\...</code> in the url bar).<br>
  Surprisingly, the behavior is quite different from opening the web version.<br>
  Now I can understand that "My Computer" zone settings differing from Internet zone ones explain the pop-up windows mentioned below, but I don't understand why the result is different and why quirks mode is not automatically chosen, just like was done when opening the  xml on the web.</p>
  
  <p>When I open the local file, I get the following:</p>
  
  <p><img src="https://i.stack.imgur.com/PYAB6.png" alt="AllowScripts"></p>
  
  <p>which no doubt is caused by a local zone setting. Next, the browser mode is IE9 (not auto quirks as earlier) and it fails on applying the XSLT:</p>
  
  <p><img src="https://i.stack.imgur.com/UQ8py.png" alt="XSLT8690"></p>
  
  <p>First I thought that this was caused by MSXML6 DOM basic settings like <code>AllowXsltScript</code> not being set to true, but I am not sure about that any more, because it all works OK when opening the web version.<br>
  So why does the local one fail?</p>
  
  <p>Stranger still, opening the web version led to auto quirks mode and correct result, but when I switch to quirks mode for the local file, it fails on the MSXML6 DOM object - actually this makes more sense to me than no error, because quirks mode probably only offers MSXML3 (or should only offer that - but then why was auto quirks in web version OK?).</p>
  
  <p><img src="https://i.stack.imgur.com/GZu8z.png" alt="Quirks1"></p>
  
  <p>After accepting, it changes to</p>
  
  <p><img src="https://i.stack.imgur.com/2djTC.png" alt="Quirks2"></p>
  
  <p>Now, when selecting IE9 standards mode again, I get</p>
  
  <p><img src="https://i.stack.imgur.com/OT5hZ.png" alt="IE9take2_console"></p>
  
  <p>and the result is the expected</p>
  
  <p><img src="https://i.stack.imgur.com/VDtpc.png" alt="IE9take2"></p>
  
  <p>Reciting events when using local files (apart from zone setting differences):</p>
  
  <ol>
  <li>IE9 standards mode XSLT8690 error</li>
  <li>Switching to quirks mode errors</li>
  <li>Switching back to IE9 standards mode is OK now</li>
  </ol>
  
  <p>Reciting the events when opening the web version (apart from differences due to zone settings):</p>
  
  <ol>
  <li>quirks mode automatically</li>
  <li>page opens correctly in quirks - apparently MSXML6 is still used here in the auto quirks mode</li>
  <li>switch to IE9 standards mode is OK too</li>
  <li>Back to quirks mode errors as above ("The parameter is incorrect'")</li>
  </ol>
  
  <p><strong>What is causing all these peculiar differences?</strong></p>