Solved!
After following Matti's suggestions, I removed the custom functions and all is well.
Original Post:
I'm new to XSLT as of today, so I'm sure this is a no-brainer for many of you. Anyways:
I've been tasked with creating a widget for my company's website that uses data provided by a 3rd-party vendor.
The vendor refuses to send us a sample XML file (even a blanked-out one with just the element tags!) so I'm trying to recreate the XML based on what I can see in the XSLT that they -did- send us. (ridiculosity abounds)
This is the (stripped) XSLT file we were sent:
<?xml version="1.0" encoding="UTF-8"?>
<xsl:transform version="1.0" xmlns:xsl="http://www.w3.org/1999/XSL/Transform" xmlns:myCustXslFunctions="urn:CustomXslFunctions">
  <xsl:variable name="NumberColumns" >1</xsl:variable>
  <xsl:variable name="PaperId" >1234567890ABCDEF</xsl:variable>
  <xsl:output method="html" version="1.0" encoding="UTF-8" indent="no" />
  <xsl:template match="/NewDataSet">
    <div><xsl:apply-templates select="/NewDataSet" mode="columns" /></div>
  </xsl:template>
  <xsl:template match="NewDataSet" mode="columns">
    <xsl:for-each select="Table[position() mod $NumberColumns  = 1 or $NumberColumns = 1]">
      <p>
        <xsl:for-each select=".|following-sibling::Table[position() < $NumberColumns]">
          <span class="description">
            <xsl:element name="a">
              <xsl:attribute name="target">_blank</xsl:attribute>
              <xsl:attribute name="class" >description</xsl:attribute>
              <xsl:choose>
                <xsl:when test="retail='true'">
                  <xsl:attribute name="href">http://website/retail/?pid=<xsl:value-of select="$PaperId" />&adid=<xsl:value-of select="paperitemid" /></xsl:attribute>
                </xsl:when>
                <xsl:otherwise>
                  <xsl:attribute name="href">http://website/?pid=<xsl:value-of select="$PaperId" />&adid=<xsl:value-of select="paperitemid" /></xsl:attribute>
                </xsl:otherwise>
              </xsl:choose>
              <xsl:choose>
                <xsl:when test="imageurl != ''">
                  <xsl:element name="img">
                    <xsl:attribute name="src"><xsl:value-of select="imageurl" /></xsl:attribute>
                    <xsl:attribute name="border">0</xsl:attribute>
                    <xsl:attribute name="class">thumbnail</xsl:attribute>
                  </xsl:element>
                </xsl:when>
                <xsl:otherwise>
                  <xsl:element name="img">
                    <xsl:attribute name="src">http://website/thumbs/<xsl:value-of select="paperid" />_<xsl:value-of select="paperitemid" />_100.jpg</xsl:attribute>
                    <xsl:attribute name="border">0</xsl:attribute>
                    <xsl:attribute name="class">thumbnail</xsl:attribute>
                  </xsl:element>
                </xsl:otherwise>
              </xsl:choose>
              </xsl:element>
          </span>
        </xsl:for-each>
      </p>
      <p>
        <xsl:for-each select=".|following-sibling::Table[position() < $NumberColumns]">
          <span class="description">
            <xsl:element name="a">
              <xsl:attribute name="target">_blank</xsl:attribute>
              <xsl:attribute name="class" >description</xsl:attribute>
              <xsl:choose>
                <xsl:when test="retail='true'">
                  <xsl:attribute name="href">http://website/?pid=<xsl:value-of select="$PaperId" />&adid=<xsl:value-of select="paperitemid" /></xsl:attribute>
                </xsl:when>
                <xsl:otherwise>
                  <xsl:attribute name="href">http://website/?pid=<xsl:value-of select="$PaperId" />&adid=<xsl:value-of select="paperitemid" /></xsl:attribute>
                </xsl:otherwise>
              </xsl:choose>
              <xsl:choose>
                <xsl:when test="string-length(shortdescr) = 0"><xsl:value-of select="myCustXslFunctions:MakeNice(descr,20,20,'Left','true')" /></xsl:when>
                <xsl:otherwise><xsl:value-of select="myCustXslFunctions:MakeNice(shortdescr,20,20,'Left','true')" /></xsl:otherwise>
              </xsl:choose>
            </xsl:element>
          </span>
        </xsl:for-each>
      </p>
    </xsl:for-each>
  </xsl:template>
</xsl:transform>
And my feeble attempt at reverse-engineering the XML:
<?xml version="1.0" encoding="UTF-8"?>
<?xml-stylesheet type="text/xsl" href="facepalm.xsl"?>
<NewDataSet>
  <Table>
    <paperid>123</paperid>
    <paperitemid>12345</paperitemid>
    <descr>facepalm of doom</descr>
    <shortdescr>facepalm</shortdescr>
    <retail>true</retail>
    <imageurl>http://website/facepalm.jpg</imageurl>
  </Table>
  <Table>
    <paperid>456</paperid>
    <paperitemid>67890</paperitemid>
    <descr>mega-sigh</descr>
    <shortdescr>sigh</shortdescr>
    <retail>true</retail>
    <imageurl>http://website/sigh.jpg</imageurl>
  </Table>
</NewDataSet>
There's no doubt in my mind that I'm overlooking something simple, but my novice status with XSLT has already made this a multi-hour project.
Any help is greatly appreciated.