I tried this, but it doesn't work. I think because it is a dropdown and not a regular hyperlink...
Code:
<xsl:template name="DepartmentDropDown">
<select>
<option value="Select">View All</option>
<xsl:for-each select="/root/EntityHelpers/*[name()=/root/Runtime/EntityName]/descendant::Entity[ParentEntityID=/root/Runtime/EntityID]">
<xsl:variable name="scName" select="aspdnsf:GetMLValue(Name)"></xsl:variable>
<option value="{aspdnsf:EntityLink(EntityID, SEName, $EntityName, 0, '')}">
<a href="{aspdnsf:EntityLink(EntityID, SEName, $EntityName, 0, '')}">
<xsl:value-of select="$scName" disable-output-escaping="yes"/>
</a>
</option>
</xsl:for-each>
</select>
</xsl:template>