I have an XSL file, which acts as a configuration file for my application. In fact it is an XML file, which has the <xsl:Stylesheet> elements wrapped around it. This file is called  Config.xsl:
     <?xml version="1.0" encoding="UTF-8"?>
     <xsl:stylesheet version="1.0" xmlns:xsl="http://www.w3.org/1999/XSL/Transform"           xmlns="http://www.example.org/Config">
     <xsl:output method="xml" version="1.0" encoding="UTF-8" indent="yes"               standalone="yes" />
     <xsl:template match="/">
     <Config>
          <Test>somevalue</Test>
          <Test1>someothervalue</Test1>
     </Config>
     </xsl:template>
</xsl:stylesheet>
Now I would like to change the value of an element, which is passed dynamically.
Meaning, I have another XML file, which contains the XPATH and the value as key name/value pairs. Below is the contents of XML file Properties.xml.
<?xml version="1.0" encoding="utf-8" ?>
<ConfigFiles>
<ConfigFile>
    <FileName>Config.xsl</FileName>
    <Keys>
        <Key Name="Config.Test" Value="newvalue" />
        <Key Name="Config.Test1" Value="newvalue1" />
    </Keys>
</ConfigFile>   
</ConfigFiles>
Below is my powershell code, which is not updating the values of the elements.
$properties = [xml] (Get-Content Properties.xml)
$lstfiles = $properties.ConfigFiles.ConfigFile
foreach($file in $lstfiles)
{
  $configfilename = $file.FileName
  $filename = "C:\configs\configfilename"
  $testconfigfile = [xml] (Get-Content $filename)
  $lstKeys = $file.Keys.Key
  foreach($key in $lstKeys)
  {
    #When I debug the code, I was able to assign the value using the below code (Commented). However this is not dynamic
    #$testconfigfile.DocumentElement.LastChild.Config.Test = "newvalue"
    #Now if I try to pass the same values dynamically by reading them from properties.xml and assigning it using the below code it does not work
    $testconfigfile.DocumentElement.LastChild.$key.Name = $key.Value            
  }
  $testconfigfile.Save($filename)               
}

$testconfigfile.DocumentElement.LastChild.$keylooks suspicious to me. It would help if you clarified your original intent. Maybe give some examples of how it should work.