I may be wrong but :
72M is quite huge... The transformation requires the building of a DOM-like structure of the XML (in Xalan, I think that they have a "light" implementation of DOM), so it takes memory !
If your XSL is simple, perhaps a solution is to parse your XML with SAX and to output the content in your text file (doing the XSL job in the
java code instead).
Christophe