I think you need this stylesheet:
<xsl:stylesheet version="1.0"
xmlns:xsl="http://www.w3.org/1999/XSL/Transform"
xmlns="urn:schemas-microsoft-com:office:spreadsheet"
xmlns:ss="urn:schemas-microsoft-com:office:spreadsheet"
xmlns:x="urn:schemas-microsoft-com:office:excel">
<xsl:template match="/">
<xsl:processing-instruction name="mso-application">progid="Excel.Sheet"</xsl:processing-instruction>
<Workbook>
<xsl:apply-templates/>
</Workbook>
</xsl:template>
<xsl:template match="/*">
<Worksheet ss:Name="{*/*/*[local-name()='docDescription']}">
<Table x:FullColumns="1" x:FullRows="1">
<Row>
<xsl:for-each select="*/*/*[local-name()='checkItem'][1]//*[not(*)]">
<Cell>
<Data ss:Type="String">
<xsl:value-of select="local-name()"/>
</Data>
</Cell>
</xsl:for-each>
</Row>
<xsl:apply-templates select="*/*/*[local-name()='checkItem']"/>
</Table>
</Worksheet>
</xsl:template>
<xsl:template match="*[local-name()='checkItem']" priority="1">
<Row>
<xsl:apply-templates select=".//*[not(*)]"/>
</Row>
</xsl:template>
<xsl:template match="*[not(*)]">
<Cell>
<Data ss:Type="String">
<xsl:value-of select="."/>
</Data>
</Cell>
</xsl:template>
</xsl:stylesheet>
With this input (proper well formed):
<bdiData>
<documentControlInfo>
<documentInfo>
<docDescription>Checks for Company X</docDescription>
<docID>
<ID>123456789</ID>
</docID>
<docModifier>My Company</docModifier>
<docCreateDate>2010-08-23</docCreateDate>
<docCreateTime>07:08:54-0700</docCreateTime>
<standardVersion>1.0</standardVersion>
<testIndicator>0</testIndicator>
<resendIndicator>0</resendIndicator>
</documentInfo>
<sourceInfo>
<sourceName>My Banking Name</sourceName>
<sourceID>
<idOther>ShortBankName</idOther>
</sourceID>
</sourceInfo>
<destinationInfo>
<destinationName>My Company</destinationName>
<destinationID>
<idOther>MYCO</idOther>
</destinationID>
</destinationInfo>
</documentControlInfo>
<checkItemCollection>
<collectionInfo>
<description>Items</description>
<ID>654811650</ID>
<Classification>
<classification>Items</classification>
</Classification>
</collectionInfo>
<checkItemBatch>
<checkItemBatchInfo>
<description>Paid Checks</description>
<ID>1239668334710</ID>
<Classification>
<classification>Paid Checks</classification>
</Classification>
</checkItemBatchInfo>
<checkItem>
<checkItemType>check</checkItemType>
<checkAmount>2960</checkAmount>
<postingInfo>
<date>2009-06-12</date>
<RT>87654321</RT>
<accountNumber>123465798</accountNumber>
<seqNum>007725552898</seqNum>
<trancode>001152</trancode>
<amount>2960</amount>
<serialNumber>55225410</serialNumber>
</postingInfo>
</checkItem>
</checkItemBatch>
</checkItemCollection>
</bdiData>
Output:
<?mso-application progid="Excel.Sheet"?>
<Workbook xmlns="urn:schemas-microsoft-com:office:spreadsheet" xmlns:ss="urn:schemas-microsoft-com:office:spreadsheet" xmlns:x="urn:schemas-microsoft-com:office:excel">
<Worksheet ss:Name="Checks for Company X">
<Table x:FullColumns="1" x:FullRows="1">
<Row>
<Cell>
<Data ss:Type="String">checkItemType</Data>
</Cell>
<Cell>
<Data ss:Type="String">checkAmount</Data>
</Cell>
<Cell>
<Data ss:Type="String">date</Data>
</Cell>
<Cell>
<Data ss:Type="String">RT</Data>
</Cell>
<Cell>
<Data ss:Type="String">accountNumber</Data>
</Cell>
<Cell>
<Data ss:Type="String">seqNum</Data>
</Cell>
<Cell>
<Data ss:Type="String">trancode</Data>
</Cell>
<Cell>
<Data ss:Type="String">amount</Data>
</Cell>
<Cell>
<Data ss:Type="String">serialNumber</Data>
</Cell>
</Row>
<Row>
<Cell>
<Data ss:Type="String">check</Data>
</Cell>
<Cell>
<Data ss:Type="String">2960</Data>
</Cell>
<Cell>
<Data ss:Type="String">2009-06-12</Data>
</Cell>
<Cell>
<Data ss:Type="String">87654321</Data>
</Cell>
<Cell>
<Data ss:Type="String">123465798</Data>
</Cell>
<Cell>
<Data ss:Type="String">007725552898</Data>
</Cell>
<Cell>
<Data ss:Type="String">001152</Data>
</Cell>
<Cell>
<Data ss:Type="String">2960</Data>
</Cell>
<Cell>
<Data ss:Type="String">55225410</Data>
</Cell>
</Row>
</Table>
</Worksheet>
</Workbook>
Wich is properly open by Excel.
Note: those fn:local-name()
are there because your input sample is unreliable.
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