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Per the objection raised during AC voting, the PR drafts of the SML and SML-IF specs referenced XML 1.0 4th edition (not 5th, which became current after SML's specs went through their CR transition). The working group has discussed this issue several times, and the nuances of various proposals to address it. As of today's telecon, there was unanimous consensus to adopt the wording in http://lists.w3.org/Archives/Public/public-sml/2009Mar/att-0044/20090330-sml-minutes.html#item06 (Henry's proposal, re-used from Schema 1.1, plus Len's change to the end), and to mark this bug editorial immediately once it has been opened.
The Schema WG on their call today revised their chosen wording in this regard very slightly, to use 'and/or' instead of 'or'. Unless this meets with opposition, I would therefore propose that what this all adds up to is XML 1.0 Extensible Markup Language (XML) 1.0 (Fourth Edition), T. Bray, J. Paoli, C. M. Sperberg-McQueen and E. Maler, editors, World Wide Web Consortium, 16 August 2006. The edition cited (http://www.w3.org/TR/2006/REC-xml-20060816) was the one current at the date of publication of this specification as a Candidate Recommendation. The latest edition of XML 1.0 is available at http://www.w3.org/TR/xml/. Implementations may follow the edition cited and/or any later edition(s); it is implementation-defined which editions are supported by an implementation.
Fixed per comment #1. The WG still needs to approve this final version.
2009-04-20 telecon: ok to mark fixed + resolved.