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The spec for op:notation-equal says two notations are equal if the arguments are equal "on a codepoint-by-codepoint basis". This is clearly wrong: notations are like QNames, they should be equal if the uri and local-name parts are equal. Test case comp-notation-2 applies.
As decided on the 1/3/2006 telcon, the semnatics of op:NOTATION-equal have been changed to mirror the semantics on op:QName-equal.