Another IE bug: transformed plain text displayed as HTML

If you use browser-side XSLT transformation triggered with xsl-stylesheet pseudo instruction in the source XML document and set the output format to plain text with xsl:output method='text', you'd expect the results to be displayed as unformatted text in the browser window (similarly to what browser does when served a document with content-type: text/plain). Not surprisingly, Firefox behaves as expected, but Internet Explorer 7 renders the results as pure HTML (going as far as interpreting the start-of-tag characters).For example, when the following XML document ...

<?xml version="1.0" ?>
<?xml-stylesheet href="t1.xsl" type="text/xsl"?>
<data>
  <row>Sample</row>
</data>

... is transformed with this stylesheet ...

<?xml version="1.0" ?>
<xsl:stylesheet version="1.0"
  xmlns:xsl="http://www.w3.org/1999/XSL/Transform">
 
<xsl:output method="text" />

<xsl:template match="row">
&lt;b&gt;<xsl:value-of select="text()" />&lt;/b&gt;
</xsl:template>

</xsl:stylesheet>

... Firefox displays the resulting text (<b>Sample</b>), but Internet Explorer displays Sample.