You're right - it works. The doc needs an update ? 
If there is a typo, here's a patch for the xdocs:

--- user-guide.xml      Fri Jun 15 02:59:36 2001
+++ new-user-guide.xml  Fri Jun 15 03:00:47 2001
@@ -1326,7 +1326,7 @@
     </p>
 
     <p>
-    <code>velocimacro.permissions.allow.inline.to.override</code> -
+    <code>velocimacro.permissions.allow.inline.to.replace.global</code> -
      With possible values of true or false,
     this property allows the user to specify if a  Velocimacro defined
     inline in a template can replace a globally defined template, one

-keng wong

On Friday 15 June 2001 12:34 am, Jason van Zyl wrote:
> Try this:
>
> services.VelocityService.velocimacro.permissions.allow.inline.to.replace.gl
>o bal = true
>
> services.VelocityService.file.resource.loader.cache = false


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