Re: [xml-dev] Summary of XML line break normalization, impact of xml:space="preserve"

>Of course the &#xD might still be normalised (to a space, #x20)
>if it is in an attribute, attribute value normaltion is a different
>beast, and happens after parsing, unlike eol normalisation which happens
>before.

Attribute normalization is different, but character references to
whitespace characters don't get normalized to #x20.  It doesn't really
happen "after parsing" in the sense of PCDATA-style parsing having
been done first, though you might say it happens "after parsing" in
the sense that you can recognise the name=literal and then normalize
the literal.  

Section 3.3.3 gives the complete rules for parsing the literal.  See
also the examples at the end of that section.

-- Richard