DOCBOOK-APPS: xsltproc processing error

This is probably a really pathetic question so 
please excuse me,

but I am having problems trying to validate and 
process an XML document

with xsltproc, the 
document is like this:

 

<?xml version="1.0" 
encoding='ISO-8859-15'?>
<!DOCTYPE article PUBLIC "-//OASIS//DTD 
DocBook XML V4.1.2//EN" "file:///C:/docbook/docbkx412/docbookx.dtd">

<article>

  ...

</article>

 

I have processed the SGML version of this file with 
no problems, as expected,

the file loads up fine in epcEdit(trial version) as 
valid XML as expected but when

I execute the command sequence:

 

C:\>xsltproc 
C:\docbook\docbook-xsl\html\docbook.xsl DocBook.xml > test.html

 

I get 64 errors all of the form

 

warning: failed to load external entity 
"../VERSION"

compilation error: file 
C:\docbook\docbook-xsl\html\docbook.xsl line 23 element include

 

for every include entry in the file "docbook.xsl", 
this does not occur if I actually change

to the directory, where "docbook.xsl" is, 
indicating that xsltproc is trying to resolve the files

it is referencing in the xsl document, relative to 
the current directory and not relative to the

xsl document, why is this happening?

 

Also, could someone tell me whats wrong with my URI 
in the document prologue?

 

Regards

 

AM