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In the proposed second edition of Schema Part 1, in section 3.4.2 (XML Representation of Complex Type Definitions), in the definition of the property {attribute wildcard}, there are two rules numbered 3.2.1. The second such rule is preceded by the phrase "The value is then determined by the appropriate case among the following"; but there is only one following case. There seems to be an "otherwise" case missing. Although the rule numbering was different in the first edition, the same problem seems to exist there. See http://lists.w3.org/Archives/Public/www-xml-schema-comments/2004AprJun/0004.html
Seem these problems are fixed in the published XML Schema second edition. Proposed to mark this bug report as resolved/fixed.
Discussed at 2005-09-23 telecon and decided this had already been fixed in the published 2E recommendation.