Yes, using the exact same rules as XSLT would be good here (although I hear the spec isn't entirely clear in this section).
I find it clear. Basically escaping a { or } is done by doubling it. The same rules apply as what normally does for \.
I'm not sure about having {} in the embedded Perl though. I guess if it's balanced its fine.
We should probably communicate this issue to the Cocoon folks though.
They don't care about being compatible with us. In fact, just because it's suggested by one of us and not one of them they'll reject it as "dirty". I'd say don't bother wasting your patience on them.
--r