CQWP ItemXslLink XSL

SharePoint 2007 CQWP ItemStyle and XSL properties need to be set to a relative path if the root site collection is under /sites managed path.

else it adds dot s and slash in the xsl property after pointing to a valid xsl file in itemxsllink property.

/../../Style Library

hence set itemxsllink to /sites/sitename/style library and everything should work fine.