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Currently, the examples in the spec are in CDATA sections. To be able to validate them, we'd need to have them as XML (again), see http://lists.w3.org/Archives/Member/member-i18n-its/2006JanMar/0203.html (member only link). This change is necessary before the last call draft in May.
I'm happy to take over the source for a couple of days and make this work, if it can wait a few weeks.
Resolved by Sebastian's work. Note that "valid" is checked only with respect to ITS markup, not other namespaces.
Closed, no further action necessary.