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AFAIU, the URL shouldn't say the checked CSS (http://people.altlinux.ru/~imz/bugs-reported/jigsaw/css-orange1.html) is valid. "orange" is not a standard color name. This is detected in some places (e.g., color property: http://jigsaw.w3.org/css-validator/validator?uri=http://people.altlinux.ru/~imz/bugs-reported/jigsaw/css-orange2.html), but the validator doesn't say it is invalid in a border property (as shown by the main URL of this report).
This appears to be fixed in the current online version, the validator correctly lists this as error in your style sheet. Please reopen the report if you think there is something we have missed.