Found the answer myself.
I had some XSL files which had the nodes selecting using something like below
Looks like the above way of selecting nodes was fine with JDK1.4.1 but with JDK 1.4.2 it wouldnt work as it was having problem finding a location path stop.
All I had to do was remove the trailing slash. SO I changed it to
When doing research for this, I came across
alot of people looking for solutions in similar situations and are confused that its because of some problem with WL 8.1 SP3. But the main reason is because the working of the TransformerFactory has changed from JDK1.4.1 to JDK 1.4.2
Hope this helps