We consider the problem of evaluating in streaming (i.e., in a single
left-to-right pass) a nested word transduction with a limited amount of memory.
A transduction T is said to be height bounded memory (HBM) if it can be
evaluated with a memory that depends only on the size of T and on the height of
the input word. We show that it is decidable in coNPTime for a nested word
transduction defined by a visibly pushdown transducer (VPT), if it is HBM. In
this case, the required amount of memory may depend exponentially on the height
of the word. We exhibit a sufficient, decidable condition for a VPT to be
evaluated with a memory that depends quadratically on the height of the word.
This condition defines a class of transductions that strictly contains all
determinizable VPTs