As I rule I wouldn't recommend using for-each
, but to make as few changes to your code as possible, try this:
<?xml version="1.0" encoding="UTF-8"?>
<xsl:stylesheet xmlns:xsl="http://www.w3.org/1999/XSL/Transform" xmlns:php="http://php.net/xsl" version="1.0">
<xsl:output method="xml" doctype-system="http://www.w3.org/TR/xhtml1/DTD/xhtml1-strict.dtd" encoding="UTF-8" />
<xsl:include href="vcardbook.xsl" />
<xsl:template name="entriesLoopBook">
<div id="team-posts">
<div>
<div class="physical">
<xsl:for-each select="entries/entry[<wherever you get $fid from> != 887">
<xsl:call-template name="vcardbook"/>
</xsl:for-each>
</div>
<div class="service">
<xsl:for-each select="entries/entry[<wherever you get $fid from> = 887">
<xsl:call-template name="vcardbook"/>
</xsl:for-each>
</div>
</dv>
</div>
<div style="clear:both;" />
</xsl:template>
</xsl:stylesheet>