I have been using the XSelerator from Marrowsoft for almost 10 years and it remains my favourite.
Free. Can be found here.
Extremely easy to use.
Very strong, xslt-oriented intelisense (prompts you with the names of existing named templates when you are entering a new ), a good xml editor, a msxml3/4 debugger, one may perform transformations with many different XSLT processors just with one mouse click.