Recursive Loop functionality that retains last position

[b0yce]

Hi all,

I am trying to create a recursive loop transformation that remembers
last position of inner loop so that it continues from that point
instead of the point from where the recursion started.

So if input XML is
<SIMPLE>
<1>
<2>
<3>
<4>
<5>
</SIMPLE>

And I want to embed 3 and 4 in a sub simple (this is a simplified
example - logic is the same) to get the output;
<SIMPLE>
<1>
<2>
<SIMPLE>
<3>
<4>
</SIMPLE>
<5>
</SIMPLE>

How would I do this. I have tried recursion using Apply Templates and
Call Templates, but after completing the first sub simple that
contains 3 and 4, the outer call is then waiting to process 4 again
(after first evaluating 3), I want to be able to bypass this so that
the outer starts at 5 according to the outcome of the inner recursion.

I can offer more explanation if needed, TIA

b0yce