Last week, we had the author of TDD for a Shopping Website LiveProject. Friday at 11am Ranch time, Steven Solomon will be hosting a live TDD session just for us. See for the agenda and registration link
No, no, no. The "clip" template should simply copy the sequence number parameter to the output.
There aren't any XSLT constructs which can work on nodes in the output. And there isn't anything in your input document which can be examined to produce a numbering system (at least not from what I can see from your input document). So the simplest thing is to produce your own sequence numbers, which is anyway trivially simple to do in the sample of XSLT which you posted. You already did half of that by choosing the sequence numbers. The second half is to use them.