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The Errata for Part 2 (Datatypes) seems to use the term space instead of whitespace, e.g. in E2-30 Clarification. Thus the definition of IDREFS should also use the term space. See http://lists.w3.org/Archives/Public/www-xml-schema-comments/2004JanMar/0056.html
E2-65 includes the proposed change. Propose to mark as fixed.
Discussed at 2005-10-28 telecon [1]. Resolved: RESOLVED, FIXED. [1] http://lists.w3.org/Archives/Member/w3c-xml-schema-ig/2005Oct/0022.html