Xalan XSLT Sax Parsing

I am trying to understand the following piece of code.
It uses xalan parser to apply an xslt file to an xml

private  Templates templates;
private  SAXTransformerFactory saxFactory = null;
String uri = "c:\\jdom_\\xsl\\address.xsl";
TemplatesHandler templateHandler = null;
try {

Properties prop = System.getProperties();

prop.setProperty("javax.xml.transform.TransformerFactory",
                     "org.apache.xalan.processor.TransformerFactoryImpl");
System.setProperties(prop);
TransformerFactory tfactory = TransformerFactory.newInstance();

saxFactory = (SAXTransformerFactory) tfactory;

templateHandler = saxFactory.newTemplatesHandler();

XMLReader reader = null;
reader = XMLReaderFactory.createXMLReader();
reader.setContentHandler(templateHandler);
reader.parse(uri);
templates = templateHandler.getTemplates();
java.io.StringWriter result = new java.io.StringWriter();

TransformerHandler handler = saxFactory.newTransformerHandler(templates);

handler.setResult(new StreamResult(result));

XMLReader xmlReader = XMLReaderFactory.createXMLReader();

xmlReader.setContentHandler(handler);
xmlReader.parse("c:\\jdom_\\xml\\address.xml");
System.out.println(result.toString());
} catch (IOException e2) {

e2.printStackTrace();
}
 catch (SAXException e2) {

e2.printStackTrace();
}
 catch (TransformerConfigurationException e) {

e.printStackTrace();
}

The confusion i have is their r 2 XMLReader 1 is used to parse xsl file , other to parse xml file. But where is the xsl applied to that xml file in this code?
If we dont have to explicitly apply the xsl to xml then how does it internally apply it to the xml when its parsed? If anyone has any links which explains how sax parser works to apply xsl to an xml please let me know
Thanks
[ December 06, 2003: Message edited by: Java Guy ]

"ITGuy",
We have a naming policy which requires a two-part, real-looking display name. Your current name clearly doesn't qualify so you'll have to go ahead and change it into something compliant.
Thanks.

Chage your display name and then I will read the rest of the post.

- m

Did you even take a glance at the naming policy?

The name has been changed...
can i get some help plz..

Thanks

And how is "Java Guy" less fake than "IT Guy"? We really do have a written naming policy.