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There is contradictory definition of the meaning of ##other in the Rec Draft of XML Schema. One section indicates that any attribute/element from any namespace other than the target namespace is valid, including absent namespace. Another section specifies that a valid attribute/element must be namespace qualified. So is the absent namespace valid or not? See: http://lists.w3.org/Archives/Public/www-xml-schema-comments/2001OctDec/0052.html
Henry confirmed that absent is not included. Note that a related issue was raised in R-65 (bug 2054). Resolution Henry to draft erratum correcting the text in section 3.10.1. Proposed text approved at the June 28 concall. Primer erratum E0-10 added. Structures erratum E1-11 added.