Here's the relevant documentation section for the next portion of this that you're interested in now.
This part would require some knowledge of XSLT processing and the syntax of the template, and admittedly, I'm not well versed in this area. For the most part, it would be using the "value-of" XSL element to template the values into an HTML output.
Going off the Polar Bear example from earlier, this would be a simple example of displaying the name as a h1 HTML element (syntax may not be 100% correct).
One thing to note is that the XSLT processing will happen at the cache URL, so if user's are meant to visit those pages directly from the search results you'll want to change the URL to the cache URL.
I should also mention that this isn't the only option. It is also possible to do the XSLT to template the XML into HTML from within your CMS/server rather than Funnelback's. Essentially, the search result would link to a dynamic page where your CMS would fetch the XML from Funnelback's cache URL and then template it into HTML for the user. The advantage to this method is that you can control what the final URL is that is displayed in the user's browser (whereas doing it on the Funnelback side will always show the cache URL to the user), and for this reason we have had clients that choose this route. A disadvantage could be if your CMS/server isn't set up to be able to do XSLT natively or if it's not well-documented, doing it on the Funnelback side may be easier.
Hopefully this gives you enough to chew on for now, but please don't hesitate to come back with more questions.