Hi, if I do:

<schema xmlns="http://www.w3.org/2001/XMLSchema"
xmlns:tg = "http://dongfang.dk/testdata"
targetNamespace="http://dongfang.dk/testdata"
elementFormDefault="qualified">

<complexType name="typename">
   <sequence>
     <element name="n1" minOccurs="0"/> <!-- q1 -->
     <element ref="tg:n2" minOccurs="0"/>
   </sequence>
</complexType>

<element name="n1">
   <complexType>
     <sequence>
       <element name="n1" minOccurs="0"/> <!-- q2 -->
       <element ref="tg:n2" minOccurs="0"/>
     </sequence>
   </complexType>
</element>

<element name="n2">
   <complexType>
     <sequence>
       <element name="n1" minOccurs="0"/> <!-- q2 -->
       <element ref="tg:n2" minOccurs="0"/>
     </sequence>
   </complexType>
</element>
</schema>


-- should I expect that the element at <!-- q1 --> somehow gets its 
contents declared by the top level n1 declaration -- or should I expect 
that its contents remain undefined?
I believe I am clear enough about the one directly below; they refer to 
the top level declaration of n2, with contents and all, right?

Does the same thing hold for the ones at q2? (only difference is really 
  that the type definitions are local, right?)

-- I know that the "tg:typename" type is never actually used, but that 
should not affect the answers :)

TNX for any input. I'll play with an implementation of a validator in 
the mean time, but, hey, you never know if there is a bug, now that I'm 
confused (too?).

Reading the TR and trying to understand it is my last option :)

Søren