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To configure the MSXML options, open the Preferences dialog box (Options > Preferences) and go to XML > XSLT-FO-XQuery > XSLT > MSXML.

The options in this preferences page for the MSXML 3.0 and 4.0 processors are as follows:
Validate documents during parse phase
If selected, and either the source or stylesheet document has a DTD or schema that its content can be checked against, validation is performed.
Do not resolve external definitions during parse phase
By default, MSXML instructs the parser to resolve external definitions such as document type definition (DTD), external subsets or external entity references when parsing the source and style sheet documents. If this option is selected, the resolution is disabled.
Strip non-significant whitespaces
If selected, strips non-significant white space from the input XML document during the load phase. Selecting this option can lower memory usage and improve transformation performance while, in most cases, creating equivalent output.
Show time information
If selected, the relative speed of various transformation steps can be measured, including:
  • The time to load, parse, and build the input document.
  • The time to load, parse, and build the stylesheet document.
  • The time to compile the stylesheet in preparation for the transformation.
  • The time to execute the stylesheet.
Start transformation in this mode
Although stylesheet execution usually begins in the empty mode, this default behavior may be changed by specifying another mode. Changing the start mode allows execution to jump directly to an alternate group of templates.