I have the following xslt which is doing it's job to get the appropriate nodes into my navigation, every node above the current node up to the level 1 node, and the nodes at level 1 all the time...

It's not closing the html tags properly though, it seems like it creates a new <ul>every time it drops a level then closes it at the 1st level inside an <li> tag.

<?xml version="1.0" encoding="UTF-8"?>
<!DOCTYPE xsl:Stylesheet [ <!ENTITY nbsp "&#x00A0;"> ]>
<xsl:stylesheet
version="1.0"
xmlns:xsl="http://www.w3.org/1999/XSL/Transform"
xmlns:msxml="urn:schemas-microsoft-com:xslt"
xmlns:umbraco.library="urn:umbraco.library"
exclude-result-prefixes="msxml umbraco.library">
<xsl:output method="xml" omit-xml-declaration="yes"/>

<xsl:param name="currentPage"/>
<xsl:param name="startLevel" select="1"/>

<xsl:template match="/">
    <xsl:if test="count($currentPage/ancestor-or-self::node [@level = $startLevel]/node) &gt; 0">
        <ul id="mainNav">
            <xsl:for-each select="$currentPage/ancestor-or-self::node [@level=$startLevel]/node [string(data [@alias='umbracoNaviHide']) != '1']">
                <xsl:call-template name="drawnode">
                    <xsl:with-param name="level" select="1"/>
                </xsl:call-template>
            </xsl:for-each>
        </ul>
    </xsl:if>
</xsl:template>

<xsl:template name="drawnode">
<xsl:param name="level"/>
    <li>
        <xsl:choose>
            <xsl:when test="@id=$currentPage/@id">
                <xsl:attribute name="class">level<xsl:value-of select="$level"/>selected</xsl:attribute>
                </xsl:when>
          
        </xsl:choose>
        <a href="{umbraco.library:NiceUrl(@id)}">
        <xsl:value-of select="@nodeName"/>
        </a>
       
        <xsl:if test="count(descendant-or-self::node [@id=$currentPage/@id]) &gt; 0">
        <ul>
            <xsl:for-each select="node">
                <xsl:call-template name="drawnode">
                    <xsl:with-param name="level" select="number($level)+1"/>
                </xsl:call-template>
            </xsl:for-each>
        </ul>
        </xsl:if>
    </li>
</xsl:template>

</xsl:stylesheet>