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Near the end of D.2.1 the spec asserts "1972-12-31T00:00:00 happens to permit both the maximum number of days and the maximum number of seconds." The sentence should end after "days" since we the datatype longer accounts for leap-seconds.
The sentence mentioned should have been deleted as part of the change adopted when we specified that leap seconds are not supported. Owing to an editorial error, it survived. I propose to resolve this issue by deleting the sentence "1972-12-31T00:00:00 happens to permit both the maximum number of days and the maximum number of seconds."
A wording proposal intended to resolve this issue among others was sent to the WG 27 February 2008: http://www.w3.org/XML/Group/2004/06/xmlschema-2/datatypes.omni200802.xml (member-only link).
At its telcon today, the XML Schema WG adopted the wording proposal at http://www.w3.org/XML/Group/2004/06/xmlschema-2/datatypes.omni200802.xml (member-only link), and believes this issue now to be resolved. Since the originator is a WG member and was present on the call, it seems likely that you agree that the issue is successfully resolved. Still, please so indicate by changing the status of the bug report to CLOSED. Or reopen it if you discover a snag. Silence will be taken to mean consent.