Variable Scope

Hi Guys

I use oxygen XML editor and notice some differences in variable scope between
MSXML and Saxon

<div class="one">
	<xsl:variable name="foo" select="'bar'"/>
</div>


<div class="two">
	<xsl:variable name="foo" select="'bar'"/>
</div>

If I transform with Saxon, everything is OK. If I transform with MSXML I get
duplicate variable error.

Which is correct? (Just curious)

Regards

Mark