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IIRC we agreed to use the Schema 1.1 definitions for these terms, but I see no evidence of that decision in either spec. Indeed, I see no definition for either term in either spec. Should we add one, by value or by reference? Editors, note: SML contains a mix of "with -" and "without -" uses of these terms, in case that tickles anyone's consistency bone.
For Schema 1.1's definitions, see http://www.w3.org/TR/2007/WD-xmlschema11-1-20070830/#key-impl-defined and http://www.w3.org/TR/2007/WD-xmlschema11-1-20070830/#key-impl-dep
Resolution 4/10: editors to define terms in SML and SML-IF specs for implementation-defined and implementation-dependent. Refer to Schema 1.1 and XPath 2, XQuery to inform the creation of these definitions. Mark as needsReview when change is made.
Added definitions for both terms in both specs - Section 2.2
+1 for the changes with one comment: The term 'processor' is not defined elsewhere in the spec.
wrt http://www.w3.org/Bugs/Public/show_bug.cgi?id=5635#c4 , I think this should be a separate bug. It is actually true of both specs. SML even uses 'processor' in its conformance section (yikes! not a good place for undefined terms).
Resolution in 5/22 call