I believe there is a bug in the documentation as a lot of content is shared between VWD and VS. I don't think VWD supports XSLT editing. It does come with a basic XML editor which can edit config files as well as your own XML files provided you have a schema, but VWD does not come with schemas for XSLT intellisense.
http://msdn.microsoft.com/vstudio/products/compare/default.aspx says "Basic XSLT support", I need to check internally what does it exactly means...
Thanks
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