Variables and Parameters within Templates

Hi,
the Rec isn't very clear about what is a "template".
In 11.5 :
  "It is an erreor if a binding established by an xsl:variable or
   xsl:param element within a template shadows another binding
   established by an xsl:variable or xsl:param also within the
   template. It is not an erreor if a binding established by an
   xsl:variable or xsl:param element in a template shadows another
   binding established by an xsl:variable or xsl:param top-level
   element."
My question is : what about variables and params in, for example,
xsl:for-each?

For example, is the following allowed ?
<xsl:template match="foo">
  <xsl:variable name="myVar" select="position()"/>
  foo : <xsl:value-of select="$myVar"/>

  <xsl:for-each select="bar">
    <xsl:variable name="myVar" select="position()"/>
    bar : <xsl:value-of select="$myVar"/>
  </xsl:for-each>
</xsl:template>

I'm developping the XSLT implementation of the libxml of Daniel Veillard
and it could totally change the way we'll handle variables.

Thanks in advance.

Tom.