[xslt] ugly text after xsl transformation

[Kamil Niechajewicz <vald dead art pl>]

I use Python libs for libxslt (and libxml2). 
I just have some XML data generated by the application 
and I want to transform it into HTML through XSL templates.
I have XSL file with templates containing some rules that
will transform my XML into HTML. This document is very
nice looking, with nice indentation and spaces.
And after I transform it (using applyStylesheet func) I
get very ugly HTML code, mostly containted in one line.
All the 'prettiess' of my HTML code from XSL file is 
lost and I get something like:

"<br><table><tr><td>xxx</td>
<tr><td>
<p>
<input type=xxx name=yyy></td>
</tr>
</table>"

when in XSL file there is:
<br>
<table>
	<tr>
		<td>hmm</td>
	</tr>
	<tr>
		<td><input type=xxx name=yyy></td>
	</tr>
</table>

Is it possible to keep this nice html-structure, wich
actually is lost through XSLT processing?

Thanks,
 Kamil