Correct.
> 2) An element of type ANY cannot contain PCDATA. That is, it cannot have a
> mixed content model.
Wrong.
<ANY-ELEMENT>lots of text and <MARKUP/> here</ANY-ELEMENT>
is valid XML.
--Lars M.
PS: This seems to be a candidate for a FAQ, a specification
clarification,
as well as a good argument for comp.text.xml