1.3b2 trouble with selectors on nested contexts in XML documents

Hi, guys. So far, 1.3b2 is a drop-in replacement for my most recent
work. I've run into only one issue so far.
I documented it here:
http://jquery.glyphix.com/1.3/
I'm happy to make a ticket for it, but I'm not sure if it's been
reported yet.