Issue with non ASCII chars and XSLTC

[COUNSELL,MIKE (HP-UnitedKingdom,ex1)]

Attached is an XSLT document that fails to compile with the following
message:

Compiler error(s):
  file:/C:/problem.xsl: line 7: Required attribute 'select' is missing.
  file:/C:/problem.xsl: line 9: Required attribute 'select' is missing.

If I remove the non ASCII chars out of the select attribute of the
xsl:value-of element then the compile succeeds.

I have not been able to find this bug in bug db, should I go ahead and
submit it?

problem.xsl
Description: Binary data