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Nope, all you need is this :<episerver xmlns:xdt="http://schemas.microsoft.com/XML-Document-Transform">
There is a problem with the namespace, see http://tedgustaf.com/blog/2010/7/using-config-transforms-for-EPiServer-settings/
If i remember correctly this is a bug in the VS 2010 files, fixed in VS2010 SP1. So upgrade if you haven't already.
I am trying to run a config transform on the episerver.config file, however the file starts with
but a transform file must start with
This causes the transform not to work. Is the xmlns of the original config required?