XML result of Schema validation

I'm having trouble finding information on the XML result of a Schema
validation; in particular, what happens when the result of a validation
acts as the input to a transformation. Does a stylesheet see
whitespace-normalized versions of text values from the input document?
Also, are default values for elements and attributes inserted for the
stylesheet to see?

 

It's certainly possible that I'm simply reading the spec incorrectly, so
any help is appreciated!

 

Thanks,

-Jack