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In section 5.1 of both 1.0 ad 1.1: "It is an error if a schema and all the components which are the value of any of its properties, recursively, fail to satisfy all the relevant Constraints on Schemas set out in the last section of each of the subsections of Schema Component Details (§3)." This is meant to refer to the 3.x.6 subsections, but they are not always the "last" section. Attribute, complex type, and simple type all have a 3.x.7 subsection for built-in components.
Proposal: delete the words "the last section of each of", so that the relevant part of the sentence reads all the relevant Constraints on Schemas set out in the subsections of Schema Component Details (§3)." It may be comforting to some readers that all the top-level sub-sections of section 3 have similar sub-structures, but they will derive that comfort even if we do not rely on or talk about the parallel structures.
On its call of 21 January 2011 the WG accepted the proposal in comment 1.
The proposal made in comment 1 has now been integrated into the status-quo documents pointed to from http://www.w3.org/XML/Group/2004/06/xsd-ed-pointers.html (member-only link). Accordingly I'm marking this issue resolved. Sandy, if you would close it to signal your agreement with the result, or reopen it to signal disagreement? Thank you.