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The REC distinguishes between attribute decls and attribute uses in order to allow refs to global decls to have their own defaulted and/or fixed values. We correctly fall back from the use to the decl in checking fixed values, but we don't actually specify the fallback in building the default. This actually requires a one-word fix (insert 'effective' before {value constraint} in Schema Information Set Contribution: Attribute Default Value in section 3.4.5) with a link to the definition of effective value constraint. This is a 'must fix', in my view. See the following for more info: http://lists.w3.org/Archives/Public/www-xml-schema-comments/2002AprJun/0137.html
Discussed at the Sept. 13 telecon. The WG agreed with HT on the proposal and is instructed to draft erratum text. Draft errata posted at: http://lists.w3.org/Archives/Member/w3c-xml-schema-ig/2002Oct/0201.html Discussed and approved at Oct. f2f. See: http://www.w3.org/XML/2002/10/xml-schema-ftf-minutes Erratm E1-38 added.