Originally posted by Rahul Bhattacharjee:
Try replacing the the current transformer with some other transformer.
When you are using XSLT, it's almost always necessary to store the entire input XML in memory. That's because your transformation is unlikely to access the input XML sequentially and it's very difficult for a program to identify transformations that do. So you'll find that transformers always store the input XML in memory.
So, if your input XML is too large to fit into memory and you can't get more memory, then you can't use XSLT on it and you will have to do what Bill Brogden suggested.