I'm getting some inconsistent error messages when processing xincludes. For instance, when processing the following document:

<?xml version='1.0' ?>
<a xmlns:xi="http://www.w3.org/2001/XInclude">
   <xi:include href="b.xml" />
   <xi:include href="c.xml">
      <xi:fallback><d/></xi:fallback>
   </xi:include>
</a>

(saved as test.xml, note that 'b.xml' and 'c.xml' do not actually exist).
Running 'xmllint --xinclude test.xml' gives the following output:

warning: failed to load external entity "b.xml"
testcase.xml:3: element include: XInclude error : could not load b.xml, and no fallback was found
warning: failed to load external entity "c.xml"
testcase.xml:4: element include: XInclude error : could not load c.xml, and no fallback was found
<?xml version="1.0"?>
<a xmlns:xi="http://www.w3.org/2001/XInclude">
   <xi:include href="b.xml"/>
   <d/>
</a>

Note that it says 'no fallback was found' for c.xml, despite it having found and processed the fallback.

If I remove the the reference to b.xml, as follows:

<?xml version='1.0' ?>
<a xmlns:xi="http://www.w3.org/2001/XInclude">
   <xi:include href="c.xml">
      <xi:fallback><d/></xi:fallback>
   </xi:include>
</a>

I now get the expected behaviour:

warning: failed to load external entity "c.xml"
<?xml version="1.0"?>
<a xmlns:xi="http://www.w3.org/2001/XInclude">
   <d/>
</a>

Following is the output of 'xmllint --version'. I am using stock installs of libxml2 from Fedora 10.

xmllint: using libxml version 20706
   compiled with: Threads Tree Output Push Reader Patterns Writer SAXv1 FTP HTTP DTDValid HTML Legacy C14N Catalog XPath XPointer XInclude Iconv ISO8859X Unicode Regexps Automata Expr Schemas Schematron Modules Debug Zlib