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In a number of places we use the term "overlap" to describe a relationship between trees (or their roots) in the sense that two trees overlap if they have nodes in common. The term is unfortunate (a) because overlap implies a more complex relationship than containment, and (b) there's a whole literature devoted to overlap in markup which is to do with handling of non-hierarchic relationships, and our use of the term is quite unrelated to this. See current discussion on xsl-list.
I have fixed this editorially by replacing the use of the word "overlapping" with "nested" or similar, with suitable explanation of the term where the context requires it.