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There appear to be some rules that are implied by the spec (from some definitions, or descriptions), but there are no constraints to enforce them. See : http://lists.w3.org/Archives/Member/w3c-xml-schema-ig/2002Nov/0237.html Also see a response: http://lists.w3.org/Archives/Public/www-xml-schema- comments/2002OctDec/0057.html
Discussed a 2005-09-02 telecon http://lists.w3.org/Archives/Member/w3c-xml-schema-ig/2005Sep/0053 Defer to 1.1. See RQ-137.