I'm having problems seeing errors that are being sent back from the .NET 4.0 XSLT processor. I've created a slice that causes a parser error: http://xsltcake.com/slices/iWXWFY/5
Make sure that the chosen XSLT processor is chosen, then click run. It seems as though nothing has happened, but looking at the Network tab of the Devloper tools in Chrome, I received the following JSON response after clicking the Run button:
{"Result":null,"Errors":"Name cannot begin with the \u0027.\u0027 character, hexadecimal value 0x2E. System.Xml.Xsl.XslLoadException"}