John Workman discusses this issue at length and gives several solutions in this discussion[1] on his blog. Basically, parse the individual date components and recombine in whatever order you wish. For your case, a pure XSLT 1.0+ version would be:
<?xml version="1.0" encoding="utf-8"?>
<xsl:stylesheet version="1.0" xmlns:xsl="http://www.w3.org/1999/XSL/Transform">
<xsl:template match="date">
<!-- converts FROM <date>2001-12-31T12:00:00</date> TO some new format (DEFINED below) -->
<xsl:template name="FormatDate">
<xsl:param name="DateTime" />
<xsl:variable name="year" select="substring($DateTime,1,4)" />
<xsl:variable name="month-temp" select="substring-after($DateTime,'-')" />
<xsl:variable name="month" select="substring-before($month-temp,'-')" />
<xsl:variable name="day-temp" select="substring-after($month-temp,'-')" />
<xsl:variable name="day" select="substring($day-temp,1,2)" />
<xsl:variable name="time" select="substring-after($DateTime,'T')" />
<xsl:variable name="hh" select="substring($time,1,2)" />
<xsl:variable name="mm" select="substring($time,4,2)" />
<xsl:variable name="ss" select="substring($time,7,2)" />
<!-- EUROPEAN FORMAT -->
<xsl:value-of select="$day"/>
<xsl:value-of select="'.'"/> <!--18.-->
<xsl:value-of select="$month"/>
<xsl:value-of select="'.'"/> <!--18.03.-->
<xsl:value-of select="$year"/>
<xsl:value-of select="' '"/> <!--18.03.1976 -->
<xsl:value-of select="$hh"/>
<xsl:value-of select="':'"/> <!--18.03.1976 13: -->
<xsl:value-of select="$mm"/>
<xsl:value-of select="':'"/> <!--18.03.1976 13:24 -->
<xsl:value-of select="$ss"/> <!--18.03.1976 13:24:55 -->
<!-- END: EUROPEAN FORMAT -->
</xsl:template>
Another format (REPLACEs the EUROPEAN FORMAT section):
<!-- Long DATE FORMAT -->
<xsl:choose>
<xsl:when test="$month = '1' or $month= '01'">January</xsl:when>
<xsl:when test="$month = '2' or $month= '02'">February</xsl:when>
<xsl:when test="$month= '3' or $month= '03'">March</xsl:when>
<xsl:when test="$month= '4' or $month= '04'">April</xsl:when>
<xsl:when test="$month= '5' or $month= '05'">May</xsl:when>
<xsl:when test="$month= '6' or $month= '06'">June</xsl:when>
<xsl:when test="$month= '7' or $month= '07'">July</xsl:when>
<xsl:when test="$month= '8' or $month= '08'">August</xsl:when>
<xsl:when test="$month= '9' or $month= '09'">September</xsl:when>
<xsl:when test="$month= '10'">October</xsl:when>
<xsl:when test="$month= '11'">November</xsl:when>
<xsl:when test="$month= '12'">December</xsl:when>
</xsl:choose>
<xsl:value-of select="' '"/> <!--January -->
<xsl:value-of select="$day"/> <!--January 12 -->
<xsl:value-of select="','"/> <!--January 12,-->
<xsl:value-of select="' '"/> <!--January 12, -->
<xsl:value-of select="$year"/> <!--January 12, 2001-->
<!-- END: Long DATE FORMAT -->
You can recombine the elements in any way you choose.
[1] <Link> @@ http://archive.is/4Hjep