So more concrete, when I try to output the following tag. I get an
error
<fullname>Ben & Jerry</fullname>
Actually, this isn't a tag. It's a start tag followed by some invalid content followed by an end tag.
You can't output invalid content using XSLT. If you have to output something that isn't XML, you'll need to use a non-XML tool to do it. And you're more likely to get advice on a non-XML forum.
What you haven't made clear is exactly what your input and output are. You say you are trying to output invalid XML, but you don't say what the input is.