Not sure how things work for others but for us it turns out that Saxon 9.2 introduces new bugs, works slower and eats much more memory than its ancestor v9.1.
Memory problem with V9.2.
We hope all this will be fixed soon.
Update: By the way, Saxon 9.2 (at the moment 2009-01-04) does not like (despises in fact) small documents and especially text nodes in those documents. It loves huge in memory documents, however.
Update 2009-01-05: case's closed, fix's commited into svn.
a@href@title, b, blockquote@cite, em, i, strike, strong, sub, super, u